During the previous year, Leveraged Inc. paid $113 million of interest expense, and its average rate of interest for the year was 8.0%. The company's ROE is 13.2%, 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.

Next year's estimated interest expense is $

next years debt X next years interest rate = next years interest expense