Here is an extract of problem from Basic Coporte Finance class

A firm issued preferred shares at a par value of $100 that pay a dividend of $2 per share every quarter. The firm has an enlargement project Sharehoders are willing to invest in this project and are ready to pay $105 per preferred share if the firm issues new preferred shares that pay a quarter dividend of $2 per share. The book value of preferred shares is $50 000.

To calulate the cost (return) of preferred shares in the WACC which price sould I use?

What is the market value of preferred shares?

THANK YOU IN ADVANCE