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During the previous year, a company paid $51 million of interest expense and its average rate of interest for the year was 9.2%. The company's
During the previous year, a company paid $51 million of interest expense and its average rate of interest for the year was 9.2%. The company's ROE is 11.5% and it pays no dividends. Estimate next years interest expense assuming that interest rates will fall by 7% and the company keeps a constant equity multiplier.
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