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Viking Pharmaceuticals has EBIT of $485 million in 2014. In addition Viking has interest expenses of $190 million, dividends of $15 million aid a corporate
Viking Pharmaceuticals has EBIT of $485 million in 2014. In addition Viking has interest expenses of $190 million, dividends of $15 million aid a corporate tax rate of 40%. Required: a) What is the 2013 net income? b) What is the total 2013 net income and interest payments? c) If V iking had no interest expense, what would its 2014 net income be? How does it compare to the answer in pact b? d) What is the amount of Viking's interest tax shield in 2014
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