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Cool Refreshments has bonds outstanding with a face value of $140,000 that are selling at par. It also has 15,000 shares of stock outstanding that

Cool Refreshments has bonds outstanding with a face value of $140,000 that are selling at par. It also has 15,000 shares of stock outstanding that are selling for $19.80 a share. The all-equity value of the firm is $395,000. The tax rate is 34 percent. What is the value of the financial distress costs? Assume there are no other claims on the firm.

A) $5,600

B) $4,800

C) $6,200

D) $5,100

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