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Buchanan Corporation is refunding $ 1 0 million worth of 1 0 % debt. The new bonds will be issued for 8 % . The

Buchanan Corporation is refunding $10 million worth of 10% debt. The new bonds will be issued for 8%. The corporation's tax rate is 25%. The call premium is 9%. What is the net cost of the call premium after taxes?
Group of answer choices
$675,000
$390,000
$1,080,000
$702,000

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