Question
Pelamed Pharmaceuticals has EBIT of $109 million in 2011. In addition, Pelamed has interest expenses of $33 million, and a corporate tax rate of 30%.
Pelamed Pharmaceuticals has EBIT of $109 million in 2011. In addition, Pelamed has interest expenses of $33 million, and a corporate tax rate of 30%.
a. What is Pelamed's 2011 net income?
b. What is the total of Pelamed's 2011 net income plus interest payments?
c. If Pelamed had no interest expenses, what would its 2011 net income be? How does it compare to your answer in part(b)?
d. What is the amount of Pelamed's interest tax shield in 2011?
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Real Estate Investing For Dummies
Authors: Eric Tyson, Robert S. Griswold
4th Edition
1119601762, 978-1119601760
