1.

2.

only need C & D

everything is right. the first picture is for #1 & the for question number 2 i posted 2 pictures.

Kraftstoff of Germany. Kraftstoff is a German-based company that manufactures electronic fuel-injection carburetor assemblies for several large automobile companies in Germany, including Mercedes, BMW, and Opel. The firm, like many firms in Germany today, is revising its financial policies in line with the increasing degree of disclosure required by firms if they wish to list their shares publicly in or out of Germany. Kraftstoff's primary problem is that the German corporate income tax code applies a different income tax rate to income depending on whether it is retained (40%) or distributed to stockholders (28%). The company's earnings before tax (EBT) is 484,500,000. a. If Kraftstoff planned to distribute 50% of its net income, what would be its total net income and total corporate tax bills? b. If Kraftstoff was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince stockholders which of the two payouts is in everyone's best interest? a. Calculate the net income available for distribution by the Hong Kong subsidiary for the years 2011-2014 b. What is the expected amount of the dividend to be remitted to the U.S. parent each year? c. After estimating the theoretical U.S. tax liability on the expected dividend (what is often termed gross-up in the U.S.), what is the total dividend after tax, including all Hong Kong and U.S. taxes, expected each year? d. What is the effective tax rate on this foreign-sourced income per year? 2011 2012 2013 2014 $ Jewel Hong Kong Income Items (millions USS) Earnings before interest and taxes (EBIT) Less interest expenses Earnings before taxes (EBT) 10,000 $ (1,000) 9,000 $ 12,000 $ (1,200) 10,800 $ 14,000 $ (1,400) the 16,000 (1,600) 14,400 $ 12,600 $ Print Done Kraftstoff of Germany. Kraftstoff is a German-based company that manufactures electronic fuel-injection carburetor assemblies for several large automobile companies in Germany, including Mercedes, BMW, and Opel. The firm, like many firms in Germany today, is revising its financial policies in line with the increasing degree of disclosure required by firms if they wish to list their shares publicly in or out of Germany. Kraftstoff's primary problem is that the German corporate income tax code applies a different income tax rate to income depending on whether it is retained (40%) or distributed to stockholders (28%). The company's earnings before tax (EBT) is 484,500,000. a. If Kraftstoff planned to distribute 50% of its net income, what would be its total net income and total corporate tax bills? b. If Kraftstoff was attempting to choose between a 40% and 60% payout rate to stockholders, what arguments and values would management use in order to convince stockholders which of the two payouts is in everyone's best interest? a. Calculate the net income available for distribution by the Hong Kong subsidiary for the years 2011-2014 b. What is the expected amount of the dividend to be remitted to the U.S. parent each year? c. After estimating the theoretical U.S. tax liability on the expected dividend (what is often termed gross-up in the U.S.), what is the total dividend after tax, including all Hong Kong and U.S. taxes, expected each year? d. What is the effective tax rate on this foreign-sourced income per year? 2011 2012 2013 2014 $ Jewel Hong Kong Income Items (millions USS) Earnings before interest and taxes (EBIT) Less interest expenses Earnings before taxes (EBT) 10,000 $ (1,000) 9,000 $ 12,000 $ (1,200) 10,800 $ 14,000 $ (1,400) the 16,000 (1,600) 14,400 $ 12,600 $ Print Done