Consider the refinancing situation in the case of Lyons Document Co. Given the case data,...
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Consider the refinancing situation in the case of Lyons Document Co. Given the case data, the case concludes with refinancing not being a good option for the firm. Assume now that instead of being regular bonds, the existing Lyons bonds have a call provision, and can be called immediately by the firm. Instead of market value, the company would then have to pay the face value of each bond, plus a call premium of $30 per bond. What would the total present value of savings be under this new situation? Enter your answer in dollars, without decimals (that is, rounded to the nearest dollar, so if your answer is $1,057.68, you would enter 1058).
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