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%. The total after-tax cost of refunding is approximately O a. $185.5 million. O b. $40.2 million. O c. $24.7 million. XF Express has a debt-equity ratio of 0.7. The pre-tax cost of debt is 8.5 percent while the unlevered cost of capital is 15 percent. What is the cost of equity if the tax rate is 35 percent? a. 17.96 percent O b. 13.79 percent O c. 14.28 percent