How much is ZED paying to purchase all of the company's stock?

What is the absolute value of the annual interest expense of Company ZED? Report your answer to two decimal places.

Introduction Company ZED is a profitable, operating in steady state forever Despite this, the economy is in recession, which has depressed the price of ZED's stock. Your PE firm is considering buying 100% of ZED's shares of stock at the asking price of: MM This corresponds to a PE ratio of: 8.9606 If your firm buys company ZED: - Your firm will operate company ZED in its steady-state condition for three years. - You will sell ZED at the end of this time, - when you believe the entity's PE ratio will have recovered to a more normal value of: \begin{tabular}{lrl} rE & 10.58% & Computed from CAPM or better. \\ rD, pre-tax & 8.00% & Interest rate of existing loan \\ \hline Income Tax rate & 38.00% & \end{tabular} Capital Structure After Purchase \begin{tabular}{lrl} D (all of company's dek & $60.0 & \\ E (all the stock after pu & $140.0 & Equity investment by PE firm \\ D+E=CAPtot & $200.0 & Enterprise Value of Firm \\ D/(D+E)=wD & 30.0% & \end{tabular} Free Cash Flows FCFE Annual \begin{tabular}{lc} Income Statement & Steady State \\ \hline Revenue & $150.000 \\ - Depreciation & ($80.000) \\ - Other Expenses & ($40.000) \\ = EBIT & $30.000 \\ -Interest & \\ - Tax & \\ \hline - NI & \\ - Working Capital & $0.00 \\ + Depreciation & $80.00 \\ \hline \end{tabular} Valuation at T=0 NPVE=PP,E+FCFE,i/(1+rE)Ti+SP,E/(1+rE)T3