Question
Pelamed Pharmaceuticals has EBIT of $321 million in 2006. In addition, Pelamed has interest expenses of $158 million and a corporate tax rate of 21%.
Pelamed Pharmaceuticals has EBIT of $321 million in 2006. In addition, Pelamed has interest expenses of $158 million and a corporate tax rate of 21%.
a. What is Pelamed's 2006 net income?
b. What is the total of Pelamed's 2006 net income plus interest payments?
c. If Pelamed had no interest expenses, what would its 2006 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 2006?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
