During the previous year, Leveraged Inc. paid $105 million of interest expense, and its average rate of interest for the year was 8.0%. The company's ROE is 11.5%, and it pays no dividends. Estimate next year's interest expense assuming that interest rates will fall by 34% and the company keeps a constant equity multiplier. Next year's estimated interest expense is $ (Round to the nearest dollar.) Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $41.81 per share. She expects the price of the stock to rise to $49.57 over the next 3 years. During that time she also expects to receive annual dividends of $4.43 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 11%? b. What is its expected return? a. The intrinsic worth of this stock is $ (Round to the nearest cent.) b. The expected return is %. (Round to one decimal place.) Jack is considering a stock purchase. The stock pays a constant annual dividend of $4.63 per share and is currently trading at $29.95. Jack's required rate of return for this stock is 14.9%. Should he buy this stock? The intrinsic value of the stock that Jack is considering is $ (Round to the nearest cent.) Should he buy this stock? (Select the best choice below.) O A. Jack should not buy the stock because it is overpriced based on his valuation (it sells for more than the maximum he should pay). If he buys the stock, he would earn more than his maximum required rate of return of 14.9%. B. Jack should buy the stock because it is underpriced based on his valuation (it sells for less than the minimum he should pay). If he buys the stock, he would earn more than his minimum required rate of return of 14.9%. O c. Jack should not buy the stock because it is underpriced based on his valuation (it sells for less than the minimum he should pay). If he buys the stock, he would not earn his minimum required rate of return of 14.9%. D. Jack should buy the stock because it is overpriced based on his valuation (it sells for more than the maximum he should pay). If he buys the stock, he would not earn his minimum required rate of return of 14.9%