1) Please explain how to get interest expense on the income statement so.

Given Information:

• MGNS's debt/equity ratio is 0.45.
• Total debt is $37,318,100 with maturity in FY8; but in year 6 (start of year), MGNS plans to issue $258,913,500 of mortgage debt with a maturity of ten years
• MGNS's operational business risk structure requires the company to currently pay a 2.25% premium to the benchmark U.S. 10-year Treasury risk-free rate for longer term debt issuance.
• The risk-free rate: U.S.10-year Treasury note yield is expected to be 1.05%.
• The expected market return (S&P 500) is the long-term realized rate of return on the S&P 500 index which is assumed to be 10.25%.
• MGNS's equity beta is assumed to be 1.57.
• Upon MGNS's IPO, 21,750,000 shares of common stock will be issued.