Use the following described situation to answer questions numbered 5 and 6. Germania Instruments Corp. (GIC) manufactures precision equipment for cameras. The companys Total Debt is comprised of senior notes outstanding with 8 years to maturity that are trading at $1,043.50 per bond with a $1,000 face value, and the company has 55,000 of these bonds outstanding. The bonds pay interest annually based on a 7.75% coupon interest rate. GIC is planning to issue $25 million of new preferred stock, which will have a par value of $50.00 per share, dividends per share of $5.50, and per-share flotation costs of $3.75 per share. The company has a marginal income tax rate of 29.50%. 5. What is GICs Pre-Tax Cost of Debt? After-Tax Cost of Debt? a. 7.7236% and 4.5048% b. 7.7236% and 2.2188% c. 7.0209% and 4.9497% d. 6.6124% and 4.4303% 6. What is GICs Pre-Tax Cost of Preferred Stock? After-Tax Cost of Preferred Stock? a. 5.4348% and 3.6413% b. 11.8919% and 11.8919% c. 11.000% and 11.0000% d. 10.8696% and 7.2826%