Buchanan Corp. is refunding $13 million worth of 11% debt. The new bonds will be issued for
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Buchanan Corp. is refunding $13 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 39%. The call premium is 8%. What is the net cost of the call premium after taxes?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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