Pelamed Pharmaceuticals has EBIT of $336 million in 2006. In addition, Pelamed has interest expenses of $164 million and a corporate tax rate of 25%. a. What is Pelamed's 2006 net income? b. What is the total of Pelamed's 2006 net income plus interest payments? c. If Pelamed had no interest expenses, what would its 2006 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 2006?

Pelamed Pharmaceuticals has EBIT of $336 million in 2006. In addition, Pelamed has interest expenses of $164 million and a corporate tax rate of 25%. a. What is Pelamed's 2006 net income? b. What is the total of Pelamed's 2006 net income plus interest payments? c. If Pelamed had no interest expenses, what would its 2006 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 2006?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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During the year, the Senbet Discount Tire Company had gross sales of $558,400. The company's cost of goods sold and selling expenses were $190,100 and $110,700, respectively. The company also had debt of $497,000, which carried an interest rate of 7 percent. Depreciation was $66,000. The tax rate was 22 percent. a. What was the company's net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What was the company’s operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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A company recently reported $9.8 million of net income. Its EBIT was $15 million, and its federal tax rate was 22%(ignore any possible state corporate taxes).What was its EBT? Blank 1What was its Tax liability? Blank 2What was its interest expense? Blank 3
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In a recent year, Cullumber Corporation had net income of $746000, interest expense of $146000, and a times interest earned ratio of 9. What was Cullumber Corporation's income before taxes for the year? Select answer from the options below $1168000 $943111 $1460000 $1314000
The firm’s NOPAT= $115, depreciation expense is $12.5, amortization expense is $0, and interest expense is $15 and tax rate = 30%. What is the firm’s EBITDA?
The web Corp has sales of $143489, cost of goods sold and other expenses (excluding depreciation) of $55491, depreciation of $16870, and a debt of $8000 on which it has to pay 4% interest. It's tax rate is 35%. Calculate its net income
At year-end 2002, Yung.com had notes payable of $1200, accounts payable of $2400, and long- term debt of $7000. Corresponding entries for 2003 are $1600, $2000, and $2000. Asset values are below. During 2003, Yung.com had sales of $10000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. The (average) tax rate is 21%, and all taxes are paid currently. The company has 100 shares of common stock outstanding with a stock price of $15 at the end of 2003. Total dividends paid is $120 in 2003. Current Asset Cash Accounts receivable Marketable securities 400 Inventory Fixed Assets 2002 Net Fixed Asset (Plant&Equipment) $800 900 1800 2003 $900 300 800 2000 $2000 $9000 In 2003, the Market-value-to-Book-value ratio is %
Pop Evil, Incorporated's, net income for the most recent year was $10, 114. The tax rate was 22 percent. The firm paid $3,455 in total interest expense and deducted $2,104 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.43 times 5.36 times 6.86 times 10.36 times 5.16 times

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