Rock Corporation can (1) build a new plant that should generate a before-tax return of 10.00%, or (2) invest the same funds in the preferred stock of Alabama Utility Company (AUC), which should provideRock Corporationwith a before-tax return of 8.50%, all in the form of dividends. Assume thatRock Corporation's marginal tax rate is 20.00%, and that 60.00% of dividends received are excluded from taxable income. If the plant project is divisible into small increments, and if the two investments are equally risky, what combination of these two possibilities will maximizeRock Corporation's effective return on the money invested? (Round your final answer to two decimal places.)

a.60% in the project; 40% inAUC.

b.60% inAUC; 40% in the project.

c.50% in each.

d.All inAUCpreferred stock.

e.All in the plant project.