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A company has an $1mm loan from a bank at an effective annual interest rate of 7%. The company's effective income tax rate is 35%.

A company has an $1mm loan from a bank at an effective annual interest rate of 7%. The company's effective income tax rate is 35%. What is the company's aftertax cost of debt for this loan? 10.5% 4.55% 3.5% 7.0% 2.45% ook Air

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