#8) Waterway Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7.0 percent, and trade at a price of $70. Wildhorse Inc.s preferred shares have a par value of $60, have a dividend rate of 4.8 percent, and trade at a price of $45. Which companys preferred stock is riskier? (Round answers to 2 decimal places, e.g. 5.17%.)

		Required rate of return
Waterway Mechanical Ltd.		%
Wildhorse Inc.		%