d. Construction in progress. 3. The CFO of Rock Industries plans to have the company issue new common stock and use the proceeds to pay off some of the company's outstanding bonds that carry a 7% interest rate. Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and tax rate all remain constant. Which of the following would occur? a. The company's taxable income would increase. b. The company's interest expense would remain constant. c. The company would have less common equity than before. d. The company's net income would fall. dustru overage but its profit margin and debt ratio are