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NexusTech's Earnings and Global Taxation. NexusTech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations

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NexusTech's Earnings and Global Taxation. NexusTech 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. NexusTech is traded on the NASDAQ. NexusTech currently has 643,000 shares outstanding. The basic operating characteristics of the various business units is as follows: 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 U.S. 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 amount-in U.S. dollars-that NexusTech's is paying across its global business in corporate income taxes? c. What is NexusTech's effective tax rate (total taxes paid as a proportion of pre-tax profit)? d. What would be the impact on NexusTech's EPS and global effective tax rate if Germany instituted a corporate tax reduction to 28%, and NexusTech's earnings before tax in Germany rose to 5,010,000 ? \begin{tabular}{lcccc} Business Performance (000s) & U.S.Parent(US$) & BrazilianSubsidiary(reais,R$) & GermanSubsidiary(euro,) & ChineseSubsidiary(yuan,) \\ \hline Earnings before taxes (EBT) & $4,570 & R$6,290 & 4,500 & 2,550 \\ Corporate income tax rate & 35% & 25% & 40% & 30% \\ Average exchange rate for the period & & R$1.8958=$1.00 & 0.6191=$1.00 & 7.7141=$1.00 \\ \hline \end{tabular} a. After deducting taxes in each country, what are NexusTech's consolidated earnings and consolidated earnings per share in U.S. dollars? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.)

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