Richcom Inc. considers investing in Poorcom Companys preferred stock and/or debt (i.e., bond). Right now, for whatever reason, Poorcom can only offer rps = 8% andrD = 11% (both before tax). Richcoms tax rate is 40%, Poorcoms tax rate is 20%.

From Poorcoms standpoint, the after-tax cost of capital on its preferred stock is [ Select ] ["6.6%", "5%", "7.52%", "3.2%", "1.6%", "10%", "8%", "9%"] , and after-tax cost of debt is [debt