Suppose a French affiliate repatriates as dividends all the after tax profits it earns If the French income tax rate is 50 and the dividend withholding tax is 10 , what is the effective tax rate on the French affiliate 's before tax profits, from the standpoint of its U S parent ...

Assume the French affiliate earns 1 million before tax It then pays 500000 in French income t ...

Suppose a French affiliate repatriates as dividends all the after-tax profits it earns. If the French income

Question:

Suppose a French affiliate repatriates as dividends all the after-tax profits it earns. If the French income tax rate is 50% and the withholding tax is 10%, what is the effective tax rate on the French affiliate's before-tax profits, from the standpoint of its U.S. parent?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...