Corporation X Needs $1,000,000 and Can Raise This Through Debt

Corporation X needs $1,000,000 and can raise this through debt at an annual rate of 6 percent,or preferred stock at an annual cost of 8 percent.If the corporation has a 21 percent tax rate,the after-tax cost of each is ________.

A) debt: $60,000; preferred stock: $80,000
B) debt: $47,400; preferred stock: $63,200
C) debt: $47,400; preferred stock: $80,000
D) debt: $60,000; preferred stock: $63,200