13. Pfizer had EBIT of $311 million in 2010. Pfizer also had interest expenses of $115 million and a corporate tax rate of 40%. What is Pfizer’s 2010 net income? Show your work. What is the total of Pfizer’s 2010 net income plus interest payments? Show your work. If Pfizer had no interest expenses, what would have been its 2010 net income, and how does it compare to your answer in part (2)?

13. Pfizer had EBIT of $311 million in 2010. Pfizer also had interest expenses of $115 million and a corporate tax rate of 40%. What is Pfizer’s 2010 net income? Show your work. What is the total of Pfizer’s 2010 net income plus interest payments? Show your work. If Pfizer had no interest expenses, what would have been its 2010 net income, and how does it compare to your answer in part (2)?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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