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Buchanan Corp. is refunding $15 million worth of 11% debt. The new bonds will be issued for 7%. The corporation's tax rate is 38%. The

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Buchanan Corp. is refunding $15 million worth of 11% debt. The new bonds will be issued for 7%. The corporation's tax rate is 38%. The call premium is 9%. What is the net cost of the call premium after taxes? Multiple Choice $872.000 $837,000 $852.000 $841,500

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