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Pelamed Pharmaceuticals has EBIT of $328 million in 2006. In addition, Pelamed has interest expenses of $85 million and a corporate tax rate of 21%.

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Pelamed Pharmaceuticals has EBIT of $328 million in 2006. In addition, Pelamed has interest expenses of $85 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? a. What is Pelamed's 2006 net income? Pelamed's 2006 net income is $ million. (Round to the nearest integer.) b. What is the total of Pelamed's 2006 net income plus interest payments? Pelamed's 2006 net income plus interest payments is $ million. (Round to the nearest integer.) c. If Pelamed had no interest expenses, what would its 2006 net income be? If Pelamed had no interest expenses, Pelamed's 2006 net income is $ million. (Round to the nearest integer.) How does it compare to your answer in part (b)? (Select from the drop-down menu.) It is than in part (b). d. What is the amount of Pelamed's interest tax shield in 2006? Pelamed's interest tax shield in 2006 is $ million. (Round to the nearest integer.)

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