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Buchanan Corp. is refunding $15 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 32%. The

Buchanan Corp. is refunding $15 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 32%. The call premium is 8%. What is the net cost of the call premium?

$851,000

$831,000

$820,500

$816,000

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