Midget Digit Toe Doctors Is Planning to Refund a 30

question 5

Multiple Choice

Midget Digit Toe Doctors is planning to refund a 30 year bond issue.They will replace $1,500,000 of 10.25% bonds with 6.25% bonds.The firm is in the 40% tax bracket.What is the savings on the refunding?

• A)$515,100
• B)$646,310
• C)$725,600
• D)$815,170