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Firms that carry preferred stock in their capital structure wantto not only distribute dividends to common stockholders but alsomaintain credibility in the capital markets so that they can raiseadditional funds in the future and avoid potential corporate raidsfrom preferred stockholders.Consider the case of Green Fish Shipbuilding Company:pt. 1Green Fish has preferred stock that pays a dividend of $10.00per share and sells for $100 per share. It is considering issuingnew shares of preferred stock. These new shares incur anunderwriting (or flotation) cost of 1.70%. How much will Green Fishpay to the underwriter on a per-share basis?a. $88.47b. $98.30c. $1.70d. $1.44pt 2After it pays its underwriter, how much will Green Fish receivefrom each share of preferred stock that it issues?a. $1.87b. $88.47c. $1.44d. $1.70e. $98.30Based on this information, Green Fish's cost of preferred stockis (10.68%/ 8.14%/10.17%/8.64%)