Question
Pelamed Pharmaceuticals had EBIT of $436 million in 2010. In addition, Pelamed had interest expenses of $200 million and a corporate tax rate of 40%.
Pelamed Pharmaceuticals had EBIT of $436 million in 2010. In addition, Pelamed had interest expenses of $200 million and a corporate tax rate of 40%.
a. What is Pelamed's 2010 net income?
b. What is the total of Pelamed's 2010 net income plus interest payments?
c. If Pelamed had no interest expenses, what would have been its 2010 net income? How does it compare to your answer in part (a)?
d. What is the amount of Pelamed's interest tax shield in 2010?
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Shrimply Inflation
Authors: Eiche Gardner
1st Edition
B0BYLXHYCY, 979-8386901233
