Ten years ago, Purple Lemon Shipbuilders issued a perpetual preferred stock issue-called PS Alpha--that pays a fixed dividend of 55,50 per share and currently sells for $100 per share. Purple Lemon's management team is considering issuing a second issue of perpetual preferred stock. If the new issue-tentatively called PS Beta-Is actually sold, the company will incur an underwriting (or flotation) cost of 5.30%. In addition, the underwriters are anticipating the need to pay a dividend of $17.25 per share to attract new Investors, and is expecting to sell the new shares for $107.00 per share. As a component in Purple Lemon's weighted average cost of capital, PS Alpha shares currently exhibit a cost of: O 6.88% 6.32% 4.68% O 5.50% per share in flotation costs, and will receive net proceeds of If Purple Lemon elects to issue Its PS Beta shares, it will pay per share from its underwriters