Blockbuster Is a Video Rental and Retail Chain A)$70,341
B)$72,054
C)$80,667
D)$87,686
E)$135,166

Blockbuster is a video rental and retail chain. Blockbuster 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 Blockbuster in Year 3? (Assume that Blockbuster's average cost of debt is 7.50%.) Selected Financial Information
Blockbuster Inc. ($ '000)
$$\begin{array} { | c | c | c | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Short Term Debt } & 31,890 & 162,430 \\\hline \text { Long Term Debt } & 1,137,256 & 798,300 \\\hline \text { Interest Expense } & & 87,686 \\\hline\end{array}$$

A) $70,341
B) $72,054
C) $80,667
D) $87,686
E) $135,166