Pelamed Pharmaceuticals has EBIT of $347 million in 2018. In addition, Pelamed has interest expenses of $147

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Pelamed Pharmaceuticals has EBIT of $347 million in 2018. In addition, Pelamed has interest expenses of $147 million and a corporate tax rate of 30%.

a. What is Pelamed’s 2018 net income?

b. What is the total of Pelamed’s 2018 net income and interest payments?

c. If Pelamed had no interest expenses, what would its 2018 net income be? How does it compare to your answer in part b?

d. What is the amount of Pelamed’s interest tax shield in 2018?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 16, 2024 04:29 AM

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Pelamed Pharmaceuticals has EBIT of $347 million in 2018. In addition, Pelamed has interest expenses of $147

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Corporate Finance

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