Question
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.
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