P$9-9$ Cost of preferred stock Mavis Taylor Corporation has just issued preferred stock. The stock has a $6\%$ annual dividend and a $$100$ par value, and was sold at $$98\mathrm{.}5$ per share. Flotation costs were an additional $$3$ per share.

a$.$ Calculate the cost of the preferred stock.

b$.$ If the firm sells the preferred stock with a $10\%$ annual dividend and net $$93\mathrm{.}00$ after flotation costs, what is its cost?