Net income plus interest payments

Assignment Help Financial Management
Reference no: EM131607814

Pelamed Pharmaceuticals had EBIT of $240 million in 2010. In addition, Pelamed had interest expenses of $67 million and a corporate tax rate of 30%.

a. What is Pelamed's 2010 net income? (round to the nearest integer)

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?

Reference no: EM131607814

Questions Cloud

What will be your realized profit and loss on the investment : What will be your realized profit/loss on the investment?
Is the fund selling at discount or at premium : What is its NAV? Is the fund selling at discount or at premium?
Supporters in order to break-even for each venue option : How many tickets will UBEAA need to sell to alumni and supporters in order to break-even for each venue option?
What would be the profit and loss : The common stock of ABC Corporation has been trading in a narrow price range for the past month, What would be the profit/loss, if ABC stock falls to $95?
Net income plus interest payments : What is the total of Pelamed's 2010 net income plus interest payments?
What kind of rate of return will he make : If Evans purchases the call and the price of the stock falls to $71 after 3 months, what kind of rate of return will he make?
What was his annual rate of return for this investment : What was his annual rate of return for this investment?
How much will they have to pay him each year : Julie has invested $100,000 in an account at her local bank. how much will they have to pay him each year?
Prepare for her financial needs after her retirement : How much does she need to invest each year to prepare for her financial needs after her retirement?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate value of each bond and relative rate sensitivity

Mr. Richards wants additional analysis on these bonds. He wants you to assume that a year has transpired and to make the following assumptions about the bonds: each bond is exactly 1 year shorter in term rate levels ar 1.75% for 9 years, 1.50% for 6 ..

  This sale does not include any personal property or fixtures

Billy purchased a home the contract for which contained a clause that said, “This sale does not include any personal property or fixtures.”   When Billy moved in he was surprised to find that the refrigerator, a bathroom vanity, and the hardwood floo..

  State the positions you would take to arbitrage

State the positions you would take to arbitrage and show the cash flows from the positions if futures price = spot price = 2257 at expiratio

  The yield to maturity remains

A bond has a $1,000 par value, 14 years to maturity, and a 6% semiannual coupon and sells for $975. Assume that the yield to maturity remains at 6.27% for the next 2 years. What will the price be 2 years from today?

  Compute the EAC for both machines

You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $69,000 per year. If your tax rate is 35 percent and your discount rate is 9 percent, compute the ..

  The net profit per share when the futures contract expires

Consider a single-stock futures contract on Apple stock. What is the net profit per share when the futures contract expires?

  What is the firms book value per share

Cardamom Corp.'s total common equity is $209.19 million. The company has 51.95 million shares outstanding. What is the firm's book value per share?

  Describe how to calculate the present value index

What criteria determine whether a project is acceptable under the Net Present Value (NPV) method? Describe how to calculate the Present Value Index.

  Five years as a safety net for recessionary periods

A man decides to save $1, 500 at the end of every month for the next five years as a safety net for recessionary periods.

  Affected by an increase in the debt ratio

Which of these items will not generally be affected by an increase in the debt ratio?

  What is the internal rate of return and net present value

Testco Corporation is considering adding a new product line. what is the net present value of this project? What is the internal rate of return?

  What is the estimated required rate of return on stock

Woidtke Manufacturing's stock currently sells for $17 a share. The stock just paid a dividend of $1.50 a share (i.e., D0 = $1.50), and the dividend is expected to grow forever at a constant rate of 3% a year. What stock price is expected 1 year from ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd