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Pelamed Pharmaceuticals has EBIT of $340 million in 2012. In? addition, Pelamed has interest expenses of $88 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?
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