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Pelamed Pharmaceuticals has EBIT of $276 million in 2011. In addition, Pelamed has interest expenses of $124 million, and a corporate tax rate of 40%.
Pelamed Pharmaceuticals has EBIT of $276 million in 2011. In addition, Pelamed has interest expenses of $124 million, and a corporate tax rate of 40%. 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? a. What is Pelamed's 2011 net income? Pelamed's 2011 net income is $ million. (Round to the nearest integer.)
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