Outlaws Is a General Goods Retail Chain in the High

Outlaws is a general goods retail chain in the High Plains region. Outlaws is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table. What is the interest expense for Outlaws in Year 3? (Assume that Outlaws average cost of debt is 6.25%.) Selected Financial Information
Outlaws Inc. ($ millions)
$$\begin{array} { | c | c | c | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Short Term Debt } & 627 & 715 \\\hline \text { Long Term Debt } & 4,194 & 4,208 \\\hline \text { Interest Expense } & & 277 \\\hline\end{array}$$

A) $209
B) $243
C) $263
D) $295
E) $308