The preferred stock of Gator industries sells for 34.51 and pays 2.72 per year in dividends what is the cost of preferred stock financing? If gator were to issue 509000 more preferred shares just like the ones it currently has outstanding it could sell them for 34.51 a share but would incur floating cost of 2.97 per share. What are the floating cost for issuing the preferred shares and how should this cost be incorporated into the NPV of the project being financed.