Pelamed Pharmaceuticals has EBIT of $325 million in 2012. In addition, Pelamed has interest expenses...
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Pelamed Pharmaceuticals has EBIT of $325 million in 2012. In addition, Pelamed has interest expenses of $125 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? a. What is Pelamed's 2012 net income? Pelamed's 2012 net income is s million. (Round to the nearest integer.) b. What is the total of Pelamed's 2012 net income plus interest payments ? Pelamed's 2012 net income plus interest payments is $ million. (Round to the nearest integer.) c. If Pelamed had no interest expenses, what would its 2012 net income be? If Pelamed had no interest expenses, Pelamed's 2012 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 2012 Pelamed's interest tax shield in 2012 is $ million. (Round to the nearest integer.)
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