Buchanan corp is refunding 12 million worth of 10 debt the


Buchanan Corp. is refunding $12 million worth of 10% debt. The new bonds will be issued for 8%. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium?

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Finance Basics: Buchanan corp is refunding 12 million worth of 10 debt the
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