Calculate the amount of bear total interest expense

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Reference no: EM132034204

Expected net income after tax next year before new financing : $60,000,000

Sinking Fund payments due next year on existing debt: $20,000,000

Interest due next year on existing debt $18,000,000

Conpany Tax rate 25%

Common Stock Price, per share $17.00

Common Shares outstanding: 22,000,000

For next year assume the firm raises $60 Million of new debt at an interest rate of 9 percent.

Calculate the amount of Bear's Total Interest Expense for the next year using the above information.

Reference no: EM132034204

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