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Buchanan Corporation is refunding $ 1 3 million worth of 1 1 % debt. The new bonds will be issued for 9 % . The

Buchanan Corporation is refunding $13 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 31%. The call premium is 10%. What is the net cost of the call premium after taxes?
Multiple Choice
$901,500
$932,000
$912,000
$897,000

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