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Net​ Income Assignment | Homework For You

Pelamed Pharmaceuticals has EBIT of $ 110 million in 2012. In​ addition, Pelamed has interest expenses of $47 million and a corporate tax rate of 30 %Homework For You

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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? Get Finance homework help today

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