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12 Rising High Corporation is raising funds for the company by selling preferred stock. The...

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12 Rising High Corporation is raising funds for the company by selling preferred stock. The preferred stock has a par value of $100 and a dividend rate of 5%. The stock is selling for $70 in the market. An investment bank, Quick Issuance Investment Bank is hired to sell the preferred stock. Quick Issuance charges a flotation fee of 3.5% on the sale of preferred stock. What is the flotation fee adjusted cost of preferred stock? Your choice: 12/15 Qs A: 67.55% B: 7.40% C: 7.04% D: 5.00% E: None of the above

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