Explore BrainMass
Share

What is the net cost of the call premium.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

X Corp is refunding 12 million worth of 10%debt. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium? Need to see calculation

© BrainMass Inc. brainmass.com March 21, 2019, 10:53 pm ad1c9bdddf
https://brainmass.com/business/business-math/net-cost-call-premium-435708

Solution Preview

Please see the attached file:
X Corp is refunding 12 million worth of 10%debt. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium? Need to see calculation

Net cost of call premium= Amount of call premium - Tax ...

Solution Summary

The expert calculates the net cost of the call premium.

$2.19