If the parent's government imposes a tax rate on funds remitted from a foreign subsidiary, a project is less likely to be feasible from the point of view.

If the parent's government imposes a __ tax rate on funds remitted from a foreign subsidiary, a project is less likely to be feasible from the __ point of view.

high; subsidiary's

high; parent's

low; parent's

high; subsidiary's AND low; parent's

None of these are correct.

Expert Solution

The correct answer is High, Parents

When the tax rate is High then it will reduce the lucrativeness of the project because the firm cost of capital will increase if they borrow money from the foreign subsidiary.This will reduce the feasibility of the project from the parent point of view.

jeff jeffy answered 2 years ago

Suppose the government imposes a tax on gasoline. Would the revenue collected from this tax likely...

Suppose the government imposes a tax on gasoline. Would the revenue collected from this tax likely be greater in the first year after it is imposed or in the fifth year? Explain using a graph. Would the deadweight loss from this tax be greater in the first year after it is imposed or in the fifth year? Explain using a graph.

Sales tax is collected from buyers and remitted to the government. A retailer has to file...

Sales tax is collected from buyers and remitted to the government. A retailer has to file a monthly sales tax report which lists the sales for the month and the amount of sales tax collected, at both the county and state levels. Develop a program that will input the total collections for a month, calculate the sales tax on the collections, and display the county and state taxes. Assume that states have a 4% sales tax and countries have a...

What "breakthrough" from a theoretical point of view is needed for solar energy to become feasible...

What "breakthrough" from a theoretical point of view is needed for solar energy to become feasible energy alternative?

In Canada, anytime one purchases from a store, the government imposes a sales tax.

In Canada, anytime one purchases from a store, the government imposes a sales tax. In most provinces, there are two levels of sales taxes: The GST, which is a Federal tax, is set at 5% of the purchase price. Then, there is the PST, which is a Provincial tax that most provinces charge. The PST rate is dependent on the province. For instance, in British Columbia, the provincial rate is 7 % of the purchase price. You are to print...

The tax system From a corporation’s point of view, does the tax treatment of dividends and...

The tax system From a corporation’s point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing? Debt financing Equity financing You bought 1,000 shares of Tund Corp. stock for $75.00 per share and sold it for $77.25 per share within the same year. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the current ordinary-income tax rate As a...

From the point of view of a government concerned with economic inequality and/or with monopoly power,...

From the point of view of a government concerned with economic inequality and/or with monopoly power, (how) would you amend this calculation of social surplus (when a project purchases an input from a monopolist)? Discuss in a short paragraph.

Speak to the current state of healthcare from a government policy and reform point of view....

Speak to the current state of healthcare from a government policy and reform point of view. You can address healthcare reform as a proponent of the Affordable Care Act or against it.

Organize the three basic forms of government from the point of view of public administrator. Suggest...

Organize the three basic forms of government from the point of view of public administrator. Suggest two or three common goals and interdependencies of the form of government in question

From a corporation’s point of view, does the tax treatment of dividends and interest paid favor...

From a corporation’s point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing? Equity financing Debt financing Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 in dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67 Cute Camel Woodcraft Company owns 248,500 shares in the Lazy Zebra Furniture. If Lazy Zebra has 350,000 shares of common...

From the point of view of a U.S.-based MNC, what key tax factors need to be...

From the point of view of a U.S.-based MNC, what key tax factors need to be considered? Minimum of 120 words please

Question