Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Medilab Pharmaceuticals had EBIT of $193 million in 2016. In addition, Medilab had interest expenses of $66 million and a corporate tax rate of 40%.
Medilab Pharmaceuticals had EBIT of $193 million in 2016. In addition, Medilab had interest expenses of $66 million and a corporate tax rate of 40%. a. What is Medilab's 2016 net profit? b. What is the total of Medilab's 2016 net profit plus interest payments? c. If Medilab had no interest expenses, what would its 2016 net profit have been? How does it compare to your answer in part b? d. What is the amount of Medilab's interest tax shield in 2016? a. What is Medilab's 2016 net profit? The 2016 net profit is $ 76 million. (Round to the nearest integer.) b. What is the total of Medilab's 2016 net profit plus interest payments? The total of Medilab's 2016 net profit plus interest payments is $ 142 million. (Round to the nearest integer.) c. If Medilab had no interest expenses, what would its 2016 net profit have been? How does it compare to your answer in part b? The 2016 net profit with no interest expense would be $ 116 million. (Round to the nearest integer.) The 2016 net profit with no interest expense is $ million lower than the 2016 net profit with interest expense. (Round to the nearest integer.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started