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Kowloon TV Mall has an outstanding bond callable at $1,340. The total value of the bond is $100 million. The company determines issuing a new

Kowloon TV Mall has an outstanding bond callable at $1,340. The total value of the bond is $100 million. The company determines issuing a new bond and use the proceeds to buy back the above bond, with transaction cost is $1,310,000. Suppose the tax rate is 30%. Based on the information given above, the total after-tax cost of refunding is approximately image text in transcribed
Kowloon TV Mall has an outstanding bond callable at $1,340.The total value of the bond is $100 million. The company determines issuing a new bond and use the proceeds to buy back the above bond, with transaction cost is $1,310,000. Suppose the tax rate is 30%. Based on the information given above, the total after-tax cost of refunding is approximately A. $24.7 million. B. $42.5 million. C. $185.5 million

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