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.