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ABC Company just heard from their banker that they can borrow at a rate of 7%. Assuming the company has taxable income, If their corporate

ABC Company just heard from their banker that they can borrow at a rate of 7%. Assuming the company has taxable income, If their corporate tax rate is 40%, what is the interest rate the company will pay after taxes?

11.67%
7%
3%
4.2%

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