Lastyear, In Debt Company paid $78million of interestexpense, and its average rate of interest for the year was 10.0%.

The company's ROE is 16.1%,and it pays no dividends. Estimate nextyear's interest expense assuming that interest rates will fall by 28%

and the company keeps a constant equity multiplier of20%.

1. Nextyear's estimated interest expense is $_____________?