der yourself the CFO of ToughNut Corp. Management is considering whether the company should refund its $792,000, 16.50% coupon, 10-year bond issue that was sold at par 3 years ago. The flotation cost on this issue $3,960 that has been amortizing on a straight-line basis over the 10-year original life of the issue. ToughNut Corp. has a tax rate of 35%, and current short-term rates are 6%. was You have collected the following data about the existing bond and the potential new bond issue: Data Collected Existing Bond $792,000 $3,960 10 New Bond $792,000 $3,498 Capital Flotation cost Maturity Years since issue Coupon Call premium After-tax cost of new debt 16.50% 13.20% 9.90 6.44% The associate financial analyst on the finance team has done some preliminary refunding analysis and submitted the following calculations to you. Consider this as step 1 in the refunding analysis. Assume that the compa additional interest on the old issue and earns no interest on short-term investments. ny pays no Check if the calculations that the financial analyst submitted are correct and match your analysis. Check each box that has a correct value. If a value is incorrect, do not check the corresponding box. Step 1: Determining the initial investment outlay