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Pelamed Pharmaceuticals has EBIT of $427 million in 2012. In addition, Pelamed has interest expenses of $193 million and a corporate tax rate of 30%.
Pelamed Pharmaceuticals has EBIT of $427 million in 2012. In addition, Pelamed has interest expenses of $193 million and a corporate tax rate of 30%.
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?
Please answer all parts for a thumbs up.
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