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NexusTech is a U . S . - based multinational manufacturing firm with wholly - owned subsidiaries in Brazil, Germany, and China, in addition to
NexusTech is a USbased multinational manufacturing firm with whollyowned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. NexusTech is traded on the NASDAQ. NexusTech currently has comma shares outstanding. The basic operating characteristics of the various business units is as follows: see photo NexusTech must pay corporate income tax in each country in which it currently has operations.
a After deducting taxes in each country, what are NexusTech's consolidated earnings and consolidated earnings per share in US dollars?
All MNEs attempt to minimize their global tax liabilities. Answer the following questions regarding NexusTech's global tax liabilities:
b What is the total amountlong dashin US dollarslong dashthat NexusTechs is paying across its global business in corporate income taxes?
c What is NexusTech's effective tax ratetotal taxes paid as a proportion of pretax profit
d What would be the impact on NexusTech's EPS and global effective tax rate if Germany instituted a corporate tax reduction to and NexusTech's earnings before tax in Germany rose to euro comma comma
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