The CFO of ABC Ltd is tasked to estimate the cost of preferred stocks. She avails the following information

on preferred stocks from her team: $($i$)$ the issue price of preferred stock was $$3\mathrm{.}5$ million, and the preferred

dividend rate was $5$ percent, $($ii$)$ if the company issued new preferred stock today, the dividend rate on preferred

stocks would be $6\mathrm{.}5$ percent, $($iii$)$ the company$$s marginal tax rate is $35\%$: