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Pelamed Pharmaceuticals had EBIT of $299 million in 2010. In? addition, Pelamed had interest expenses of $95 million and a corporate tax rate of 35%.
a. What is? Pelamed's 2010 net? income?
b. What is the total of? Pelamed's 2010 net income plus interest? payments?
c. If Pelamed had no interest? expenses, what would have been its 2010 net? income? How does it compare to your answer in part (a?)?
d. What is the amount of? Pelamed's interest tax shield in? 2010?
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