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The CFO of SoulCrush Fitness plans to have the company issue $200 million of new common stock and to use the proceeds to pay off

The CFO of SoulCrush Fitness plans to have the company issue $200 million of new common stock and to use the proceeds to pay off some of its outstanding bonds that carry a 6% interest rate. Assuming that the company, which does not pay any dividends, takes this action, and that total assets, operating income, and its tax rate all remain constant. Which of the following would occur? A. The companys interest expense would remain unchanged. B. The companys taxable income would decrease. C. The company would have less common equity than before. D. The companys net income would increase. E. The company would have to pay less in taxes.

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