2. A company has preferred stock with a current market price of $18 per share. The...

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2. A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.50 per share. The company's marginal tax rate is 40%. Based on the above information, calculate: A) Costs of preferred stock B) Costs of new preferred stock 2. A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.50 per share. The company's marginal tax rate is 40%. Based on the above information, calculate: A) Costs of preferred stock B) Costs of new preferred stock