Question
Pelamed Pharmaceuticals had EBIT of $358 million in 2018. In addition, Pelamed had interest expenses of $93 million and a corporate tax rate of 22%.
Pelamed Pharmaceuticals had EBIT of $358 million in 2018. In addition, Pelamed had interest expenses of $93 million and a corporate tax rate of 22%.
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?
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Financial And Managerial Accounting
Authors: Nonso E Okpala
1st Edition
1634873904, 9781634873901
