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Medilab Pharmaceuticals had EBIT of $299 million in 2016. In addition, Medilab had interest expenses of $149 million and a corporate tax rate of 35%.
Medilab Pharmaceuticals had EBIT of $299 million in 2016. In addition, Medilab had interest expenses of $149 million and a corporate tax rate of 35%. 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 $ 97 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 $ 246 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 $ 194 million. (Round to the nearest integer.) The 2016 net profit with no interest expense is $ 97 million lower than the 2016 net profit with interest expense. (Round to the nearest integer.)
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