During the previous year, Leveraged Inc. paid $$110$ million of interest expense, and its average rate of interest for the year was $8\mathrm{.}0\%.$ The company's ROE is $17\mathrm{.}6\%,$ and it pays no dividends.

Estimate next year's interest expense assuming that interest rates will fall by $22\%$ and the company keeps a constant equity multiplier.

Save

Next year's estimated interest expense is $ $($Round to the nearest dollar.$)$