Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pelamed Pharmaceuticals had EBIT of $ 208 million in 2018. In addition, Pelamed had interest expenses of $ 57 million and a corporate tax rate

Pelamed Pharmaceuticals had EBIT of $ 208 million in 2018. In addition, Pelamed had interest expenses of $ 57 million and a corporate tax rate of 22 %.

a. What is Pelamed's 2018 net income?

The 2018 net income is $__ million.(Round to the nearest integer.)

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 $____.

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 would be $____.

The 2018 net income with no interest expense is $_____ ____(Higher/lower)____than the 2018 net income with interest expense,

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

Pelamed's interest tax shield in 2018 is $_____million.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Raising Venture Capital

Authors: Rupert Pearce, Simon Barnes

1st Edition

0470027576, 978-0470027578

More Books

Students also viewed these Finance questions