you are the CFO of the Imaginary Products Co the company provides the following information about its capital structure: Debt: the firm has 200,00 bonds outstanding with a pair value of $1,000, pays 9 percent interest (semi-annual coupon payments), have a maturity of 15 years and have a quoted price of 137.55 per bond. preferred shares: the firm also has an issue of 2 million preferred shares outstanding with a market price of $12.00 per share the preferred shares pay an annual dividend of 2.4 percent of the par value of $50.00 common stock: the company also has 14 million shares of common stock outstanding with a price of $20.00 per share the firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. the firm is considering a 3 year expansion project (same operations as the existing projects of the firm) that requires a purchase of a machine of $210,000. there will be an increase in inventory of $150,000, accounts receiveable of $35,000, and accounts payable of $75,000. the machine will be in the 3-year MARCS class and the annual depreciation rates are 33 percent in year 1, 44 percent in year 2, 15 percent in year 3, and 8 percent in year 4 the project is expected to generate Earnings Before Interest, Taxes, Deprecation, and Amortization (EBITDA) of $80,000 each year. At the end of the project (year 3) the machine can be sold for $25,000. the firms tax rate is 21 percent. solve for the cost of preferred stock