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Pelamed Pharmaceuticals has EBIT of $473 million in 2011. In addition, Pelamed has interest expenses of $128 million, and a corporate tax rate of 35%.
Pelamed Pharmaceuticals has EBIT of $473 million in 2011. In addition, Pelamed has interest expenses of $128 million, and a corporate tax rate of 35%. 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
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