1. XYZ CORPORATION has a rather High Beta Coefficient (B) of 1.35 because it has outstanding Bonds worth $ 600 million as a compared its Shareholders Equity of $ 400 million. You have been asked by the XYZ to calculate the $-amount of Bonds that it must either pay off or buyback to reduce its Beta to 1.25. Your approximate answer is:

   Note: Assume XYZ is 21% Marginal Tax Bracket (MTB)

   		A. $ 37m
   		B. $ 95m
   		C. $ 120m
   		D. $ 75 m
   		E. $ 82 m
   		F. $ 97m