Question: Many emerging economies have restrictions on capital outflows to protect

Many emerging economies have restrictions on capital outflows to protect their growth and stability; for example, they may impose high taxes on repatriated profits by foreign companies. Where andhowwould you include such taxes in the DCF valuation of your company’s subsidiary in a highgrowth emerging economy, if the taxes are (1) levied in perpetuity or (2) gradually decreased to zero over the next 10 years as the economy starts to
mature?

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  • CreatedAugust 12, 2015
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