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Buchanan Corporation is refunding $12 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 34%. The

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Buchanan Corporation is refunding $12 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 34%. The call premium is 8%. What is the net cost of the call premium after taxes? Multiple Choice $633,600 $638,100 $668,600 $648,600

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