How does this observation relate to the tax incentives

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Question: A financial reporter recently commented that McDonalds went through a period when it bought up many of its own franchises. According to the report, the franchises are not particularly profitable; McDonalds bought them because it was "throwing off so much cash that it didn't know what else to do with it" [Eisinger, 2005, p. CI]. How does this observation relate to the tax incentives for a corporation to retain earnings?

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