Question: Hi, I need help with my Managerial Finance assignment please. . . Buchanan Corp. is refunding $14 million worth of 12% debt. The new bonds

Hi, I need help with my Managerial Finance assignment please. . .

Buchanan Corp. is refunding $14 million worth of 12% debt. The new bonds will be issued for 8%. The corporation's tax rate is 30% The call premium is 8%. What is the net cost of the call premium? $784,000 $819,000 788 500 $799,000

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