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Buchanan Corp. is refunding $12 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 35%. The

Buchanan Corp. is refunding $12 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 35%. The call premium is 7%. What is the net cost of the call premium after taxes?

A. $550,500

B. $581,000

C.$561,000

D.$546,000

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