Question
Pelamed Pharmaceuticals has EBIT of $363 million in 2012. In addition, Pelamed has interest expenses of $139 million and a corporate tax rate of 40%.
Pelamed Pharmaceuticals has EBIT of $363 million in 2012. In addition, Pelamed has interest expenses of $139 million and a corporate tax rate of 40%.
a. What is Pelamed's 2012 net income?
b. What is the total of Pelamed's 2012 net income plus interest payments?
c. If Pelamed had no interest expenses, what would its 2012 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 2012?
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Grow Your Small Business Profits How I Find A 100K In Any Business In 45 Minutes
Authors: Sharon Coleman
1st Edition
B0C9S9CCZJ, 979-8850917258
