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Buchanan Corp. is refunding $11 million worth of 12% debt. The new bonds will be issued for 8%. The corporation's tax rate is 34%. The
Buchanan Corp. is refunding $11 million worth of 12% debt. The new bonds will be issued for 8%. The corporation's tax rate is 34%. The call premium is 8%. What is the net cost of the call premium after taxes?
A) $595,800
B) $615,800
C) $585,300
D) $580,800
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