Tom Fong Music Inc, has an outstanding bond callable at $1,340. The total value of the bond is $100 million. The company is considering issuing a new bond and using the proceeds to buy back the existing bond. The transaction cost of such refunding is $23,430,000. Suppose the tax rate is 30%. What is the condition for the existing callable bond to be refunded? the total after-tax cost of refunding is higher than the after-tax gain from the cost of debt saving O b. the after-tax gain from the cost of debt saving is higher than the total after- tax cost of refunding O c. the total after-tax cost of refunding equals the after-tax gain from the cost of debt saving