Ala Co. can borrow at a floating rate of LIBOR + 1.26% or at a fixed rate of 8.4%, but prefers to take out a fixed rate loan. K-Roo Ltd. can borrow at a floating rate of LIBOR + 2.94% or at a fixed rate of 9.24%, but prefers to take out a floating rate loan. Suppose K-Roo Ltd. and Ala Co. enter into an interest rate swap agreement and decide to split the cost savings at a ratio of 80% (Ala) to 20% (K-Roo). At what rate can Ala Co. borrow for its fixed rate funds? a. 7.7280% b. 7.9800% c. 7.5600% d. 8.40%, Ala Co should not enter into this swap with K-Roo Ltd. Oe. None of these options