The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Complete the following problems from Chapter 19 in the textbook:
Follow these instructions for completing and submitting your assignment:
19–1 Tax credits A U.S.-based MNC has a foreign subsidiary that earns $250,000 before
local taxes, with all the after-tax funds to be available to the parent in the form of
dividends. The applicable taxes consist of a 33% foreign income tax rate, a foreign
dividend withholding tax rate of 9%, and a U.S. tax rate of 34%. Calculate the net
funds available to the parent MNC if:
a. Foreign taxes can be applied as a credit against the MNC’s U.S. tax liability.
b. No tax credits are allowed.
P19–3 Exchange rates Fred Nappa is planning to take a wine-tasting tour through Italy
this summer. The tour will cost 2,750 euros (€) and includes transportation, hotels,
and a guide. Fred estimates that round-trip airfare from his home in North Carolina
to Rome, Italy, will be $1,490; he also will incur another $300 (U.S.) in incidental
travel expenses. Fred estimates the cost of meals in Italy to be about €500, and he
will take an additional $1,000 to cover miscellaneous expenditures. Currently, the
exchange rate is US$1.3411/€1.00 (or €.7456/US$1.00).
a. Determine the total dollar cost of the trip to Italy.
b. Determine the amount of euros (€) Fred will need to cover meals and miscellaneous
expenditures.
P19–5 Euromarket investment and fund raising A U.S.-based multinational company has
two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan
(local currency, yen, °Õ). Forecasts of business operations indicate the following
short-term financing position for each subsidiary (in equivalent U.S. dollars):
Mexico: $80 million excess cash to be invested (lent)
Japan: $60 million funds to be raised (borrowed)
The management gathered the following data:
LG 1
LG 4
LG 5
Currency
Item US$ MP
Spot exchange rates MP 11.60/US$ °Õ108.25/US$
Forecast percent change 23.0% 11.5%
Interest rates
Nominal
Euromarket 4.00% 6.20% 2.00%
Domestic 3.75% 5.90% 2.15%
Effective
Euromarket ——— ——— ———
Domestic ——— ——— ———
Determine the effective interest rates for all three currencies in both the Euromarket
and the domestic market, and then indicate where the funds should be invested and
raised. (Note: Assume that because of local regulations, a subsidiary is not permitted
to use the domestic market of any other subsidiary.)
PBT ### Less:[email protected]% ### PATdividendwithholding [email protected]%NetSurplus ###### ### IF CreditAvailable forForeign taxNet###ReceiptUS Tax###@34%### Add:TaxCreditNetFund…
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more