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Last year, InDebt Company paid $78 million of interest expense, and its average rate of interest for the year was 10.0%. The company's ROE is
Last year, InDebt Company paid $78 million of interest expense, and its average rate of interest for the year was 10.0%. The company's ROE is 16.7%, and it pays no dividends. Estimate next year's interest expense assuming that interest rates will fall by 26% and the company keeps a constant equity multiplier of 20%. Next year's estimated interest expense is $
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