Why is the cost of preferred shares the rate of return investors require on a company's new preferred shares PLUS the cost of issuing the shares when the cost of equity can be either the cost of current equity OR the cost of equity plus the cost of issuing the shares?

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The Answer of Why is the cost of preferred shares the rate of return investors require on a company's new preferred shares PLUS the cost of issuing the shares when the cost of equity can be either the cost of current equity OR the cost of equity plus the cost of issuing the shares?

Why Is the Cost of Preferred Shares the Rate of Return