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Buchanan Corp. is refunding $10 million worth of 10% debt. The new bonds will be issued for 7%. The corporation's tax rate is 32%. The
Buchanan Corp. is refunding $10 million worth of 10% debt. The new bonds will be issued for 7%. The corporation's tax rate is 32%. The call premium is 9%. What is the net cost of the call premium?
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
