The preferred stock of gator industries sells for 3455 and

The Preferred stock of Gator industries sells for $34.55 and pays $2.74 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 469,000 more preferred shares just like ones it currently has outstanding, it could sell them for $34.55 a share but would incur flotation costs of $2.85 per share. What are the flotation costs for issuing the preferred shares and how should this cost be incorporated into the NPV of the project being financed?

The firm's cost preferred stock financing is ____%

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Financial Management: The preferred stock of gator industries sells for 3455 and
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