Calculate the net funds available to the parent MNC

Assignment Help Financial Management
Reference no: EM131535557

Tax credits

A? U.S.-based MNC has a foreign subsidiary that earns $255,000 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 38% foreign income tax? rate, a foreign dividend withholding tax rate of 9.3%?, and a U.S. tax rate of 28%.

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.

Reference no: EM131535557

Questions Cloud

Monthly mortgage payment and total interest payments : what would be the monthly mo mortgage payment and the total interest payments?
Should nwt change its credit terms : Next Week’s Technology (NWT) is evaluating whether to change its credit terms from 2/10, net 30 to 3/10, net 30. Should NWT change its credit terms?
Assume all operating costs are paid when inventory : Assume all operating costs are paid when inventory is sold and that all sales are collected at the DSO.
What would his payments be if he borrows under these terms : What would his payments be if he borrows under these terms?
Calculate the net funds available to the parent MNC : Calculate the net funds available to the parent MNC? if. Foreign taxes can be applied as a credit against the? MNC's U.S. tax liability.
What is monthly loan payment : You must pay 2 points for the loan. What is your monthly loan payment?
Deposit monthly in order to reach the goal : how much money must each of them deposit monthly in order to reach the goal?
Find the receipt showing the cost basis of industrial oven : During an audit of ABC company an IRS agent could not find the receipt showing the cost basis of an industrial oven.
What is the current value of one peso in terms of dollars : Assume that the Mexican peso currently trades at 15 pesos to the U.S. dollar. What is the current value of one peso in terms of U.S.? dollars?

Reviews

Write a Review

Financial Management Questions & Answers

  The amount of the risk premium on zelo shares

Zelo NV share has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo shares?

  What are the price ranges

Access a new car calculator, and enter the information identifying the make, model, and features of your dream car. Are there any available in your area? What are the price ranges?

  Constant growth valuation woidtke manufacturings stock

Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $32.50 a share. The stock just paid a dividend of $1.04 a share (i.e., D0 = $1.04), and the dividend is expected to grow forever at a constant rate of 4.65% a year. What stoc..

  What is this project internal rate of return

Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of $19,000 per year for 11 years. What is the project's NPV..

  What is the cost of equity if you ignore taxes

Winter's Toyland has a debt-equity ratio of 0.58. The pre-tax cost of debt is 8.1 percent and the required return on assets is 15.1 percent. What is the cost of equity if you ignore taxes?

  David on an after-tax basis

Assuming that David is in the 25 percent tax bracket, calculate his taxable income and the amount of his tax savings. How much did it actually cost David on an after-tax basis to make his retirement plan contribution?

  What is the present value of the winnings

You have just won the lottery and will receive $50,000 per year at the end of each of the next 10 years. what is the present value of the winnings?

  What is the value of each cash flow stream

Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. Wha..

  Fred has limits of liability

Fred has limits of liability of 25/50/25 for his auto insurance. Fred ran into Jane’s car, causing $15,000 worth of damage to her Lexus and injuring Jane, whose medical bills were $12,000. Jane sued Fred for an additional $100,000 for mental anguish ..

  What does the yield curve represent

What does the yield curve represent? What does the cost of capital represent?

  Calculate ensitivity of OCF to changes in the quantity sold

Consider a four-year project with the following information: initial fixed asset investment = $484680; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33; variable costs = $23; fixed costs = $181848; quantity ..

  Life insurance funding in a buy-sell agreement

Advantages of using life insurance funding in a buy-sell agreement include all of the following except:

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