Strawberry has preferred stock that pays a dividend of $9.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.10%.

How much will Strawberry pay to the underwriter on a per-share basis?

$97.90

$2.10

$1.79

$88.11

After it pays its underwriter, how much will Strawberry receive from each share of preferred stock that it issues?

$2.10

$2.31

$1.79

$97.90

$88.11