When a company incorporated in a country with a high tax rate does business in countries with
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occurs if the company decides to repatriate earnings? Howshould operating taxes be computed in the year of repatriation? How is ROIC distorted by foreign taxation and repatriation?
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EXHIBIT 25.9 ToyCo: Tax Reconciliation Table percent Year1 Year2 Year 3 35.0 0.7 Statutory income tax rate State and local income taxes, net Repatriation of foreign earnings Liabilities settleable in common stock Tax on international eamings Exam settlements Other, net Effective tax rate 35.0 1.1 35.0 1.0 3.5 34 (6.5) 79 7.5) (6.5) 08) 0.5) 1.5 28.0 10.4) 304 29.2 Profits (millions of dollars) Operating profit (EBITA) Earnings before taxes 587.1 5726 6736 462.3 44.1 529.7
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Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
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