Assignment Chapter 1 Practice Problems Chapter 01 US Parent Brazilian German Chinese Business Performance (000s) HQ Subsidiary Subsidiary Subsidiary (USS) (reais, RS) (euros, ) (yuan, Y) Average exchange rate for the period (Units of 1.0000 1.8000 0.7018 7.7500 foreign currency per ) Total shares outstanding (000s) 650 4,500.00 35% 6,250.00 25% 4,500.00 40% 2,500.00 30% Earnings before taxes (EBT in local currency) Corporate Tax Rate Less corporate income taxes Net profits of individual subsidiary = EBT-T Net profits of individual subsidiary (USS) Americo is an MNC with its headquarters I the US. The firm has three foreign subsidiaries. Basic financial information for the firm is in the above table. Determine the following: a. Earnings per share (EPS) for the consolidated firm b. Tax rate for the consolidated firm c. What would be the EPS if the new exchange rates for Brazil, Germany and China are R$ 1.6364/$, 0.6380/$, and yuan 7.0455/$ respectively