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boland boland
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Posts: 1892
7 years ago
A foreign subsidiary has $2,000,000 of taxable income, a (foreign) corporate tax rate of 25%, and a foreign dividend withholding rate of 10%. The U.S. (domestic) parent has a corporate tax rate of 30%. What are the additional taxes paid by the U.S. domestic parent after the foreign subsidiary pays corporate and withholding taxes? Assume that the foreign subsidiary is 100% owned by the U.S. parent and that all after-tax income is paid to the U.S. parent.
A) $250,000
B) $405,000
C) $0.00
D) $600,000
Textbook 
Fundamentals of Multinational Finance

Fundamentals of Multinational Finance


Edition: 5th
Authors:
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noxx53noxx53
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7 years ago
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boland Author
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7 years ago
This is awesome, thanks so much
wrote...
7 years ago
Happy to help Smiling Face with Open Mouth
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