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Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo

Americo is a U.S.-based multinational manufacturing firm with  wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has

 

646,000

shares outstanding. The basic operating characteristics of the various business units are as follows


Business Performance (000s)


U.S. Parent


(US$)


Brazilian


Subsidiary


(R$)


German


Subsidiary


()


Chinese


Subsidiary


()




Earnings before taxes (EBT)


$4,320


R$7,250

 


5,350


2,490


Corporate income tax rate


35%


25%


40%


30%


Average exchange rate for the period



R$1.8188/$


0.7716/$


7.7819/$


Americo must pay corporate income tax in each country in which it currently has operations.


a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars?


b. What proportion of Americo's consolidated earnings arise from each individual country?

c. What proportion of Americo's consolidated earnings arise from outside the United States?






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