Question
Pelamed Pharmaceuticals had EBIT of $480 million in 2018. In addition, Pelamed had interest expenses of $201 million and a corporate tax rate of 22%.
Pelamed Pharmaceuticals had EBIT of
$480
million in
2018.
In addition, Pelamed had interest expenses of
$201
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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The Pillars Of Finance The Misalignment Of Finance Theory And Investment Practice
Authors: G. Fraser-Sampson
2014th Edition
1137264055, 978-1137264053
