Buchanan 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? (Show all work/formulas/calculations)© BrainMass Inc. brainmass.com June 3, 2020, 11:43 pm ad1c9bdddf
The solution computes net cost of the call premium.