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Buchanan Corporation is refunding $ 1 3 million worth of 1 1 % debt. The new bonds will be issued for 8 % . The

Buchanan Corporation is refunding $13 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 31%. The call premium is 11%. What is the net cost of the call premium after taxes?
Multiple Choice
$1,001,700
$991,200
$1,021,700
$986,700

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