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Lastyear, InDebt Company paid $ 86 million of interestexpense, and its average rate of interest for the year was 10.0 %. Thecompany's ROE is 11.9
Lastyear, InDebt Company paid $86 million of interestexpense, and its average rate of interest for the year was 10.0%. Thecompany's ROE is 11.9%, and it pays no dividends. Estimate nextyear's interest expense assuming that interest rates will fall by 29% and the company keeps a constant equity multiplier of20%.
Nextyear's estimated interest expense is $_____?
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