P8.6 Last year, InDebt Company paid $75 million of interest expense, and its average rate of interest

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P8.6 Last year, InDebt Company paid $75 million of interest expense, and its average rate of interest for the year was 10%. The company's ROE is 15%, and it pays no dividends. Estimate next year's interest expense assuming that interest rates will fall by 25% and the company keeps a constant equity multiplier of 20.

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Fundamentals Of Investing

ISBN: 9780136117049

11th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart

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