Pelamed Pharmaceuticals had EBIT of

$115

million in

2018.

In addition, Pelamed had interest expenses of

$34.93

million and a corporate tax rate of

21%.

a. What is Pelamed's

2018

net income?b. What is the total of Pelamed's

2018

net income plus interest payments? c. If Pelamed had no interest expenses, what would have been its

2018

net income? How does it compare to your answer in part

(a)?

d. What is the amount of Pelamed's interest tax shield in

2018?

Question content area bottom

Part 1

a. What is Pelamed's

2018

net income?The

2018

net income is

$enter your response here

million.(Round to the nearest integer.)

Part 2

b. What is the total of Pelamed's

2018

net income plus interest payments? The total of Pelamed's

2018

net income plus interest payments is

$enter your response here

million.(Round to the nearest integer.)

Part 3

c. If Pelamed had no interest expenses, what would have been its

2018

net income? How does it compare to your answer in part

(a)?

The

2018

net income with no interest expense would be

$enter your response here

million. (Round to the nearest integer.)

Part 4

The

2018

net income with no interest expense is

$enter your response here

million higher than the

2018

net income with interest expense.(Round to the nearest integer.)

Part 5

d. What is the amount of Pelamed's interest tax shield in

2018?

Pelamed's interest tax shield in

2018

is

$enter your response here

million.(Round to the nearest integer.)