Do low tax rates in a foreign country imply that expected after-tax rates of return on marginal investments should be higher than those on domestic investments? Explain.
Answer to relevant QuestionsDoes your answer to the prior question depend on whether the investment funds come from earnings and profits or from new investment dollars? Explain. What is the difference between a direct foreign tax credit and an indirect (deemed paid) foreign tax credit? Bloomington Pharmaceuticals is a U.S. corporation considering where to locate a new manufacturing facility. The facility will require an investment of $50 million, and any profits during the n-year investment horizon will be ...How is the foreign tax credit limitation determined? How does worldwide averaging work? If the firm had no plans to repatriate income from a low- tax country, would it be advisable to do so if foreign tax credit carry ...Triangle Health is a pharmaceutical firm located in North Carolina’s Research Triangle. Triangle Health this year acquired extensive foreign operations, so it is not concerned with foreign tax credit carry forwards or ...
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