K-Roo Ltd. can borrow at a floating rate of LIBOR + 1.86% or at a fixed rate of 12.4%, but prefers to take out a fixed rate loan. Ala Co. prefers to take out a floating rate loan, and can borrow at a fixed rate of 13.64% and a floating rate of LIBOR + 4.34%. 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% (K-Roo) to 20% (Ala). At what rate can K-Roo Ltd. borrow for its fixed rate funds? a. 11.4080% b. 11.7800% c. 11.1600% d. 12.40%, K-Roo Ltd. should not enter into this swap with Ala Co. e. None of these options