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Last year, InDebt Company paid $95 million of interest expense, and its average rate of interest for the year was 10.0 %. The company's ROE
Last year, InDebt Company paid $95 million of interest expense, and its average rate of interest for the year was 10.0 %. The company's ROE is 15.9 %, 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 of 20%.
Next year's estimated interest expense is
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