Response to the following questions:
1. HighTeck has an ROE of 15%. Its earnings per share are $2.00, and its dividends per share are $0.20. Estimate HighTeck's growth rate.
2. Last year, InDebt Company paid $75 million of interest expense, and its average rate of interest for the year was 10%. The company's ROE is 15%, and it pays no dividends. Estimate next year's interest expense assuming that interest rates will fall by 25% and the company keeps a constant equity multiplier of 20%.