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Business, 26.05.2021 05:00 georgesarkes12

During the previous year, Leveraged Inc. paid $100 million of interest expense, and its average rate of interest for the year was 8%. The company's ROE is 18.4%, 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, Calculate next year's estimated interest expense

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During the previous year, Leveraged Inc. paid $100 million of interest expense, and its average rate...
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