Would someone help me with an exchange rate question? Thanks a lot The Daily Planet has a wholly owned foreign subsidiary in Brazil. The subsidiary earns 30 million reals per year before taxes in Brazil. The foreign income tax rate is 30%. The subsidiary repatriates the entire after-tax profits in the form of dividends to the Daily Planet. The U.S. corporate tax rate is 40% of foreign earnings before taxes. a) Compute after-tax cash flow to the Daily Planet from this investment (in reals). Use the following table. Before-tax earnings in (in reals) Foreign income tax at 30% Earnings after foreign income taxes Dividends repatriated Gross US taxes at 40% of foreign earnings before taxes Foreign tax credit Net US taxes payable After-tax cash flow

The Daily Planet has a wholly owned foreign subsidiary in Brazil. The subsidiary earns 30 million reals per year before taxes in Brazil. The foreign income tax rate is 30%. The subsidiary repatriates the entire aftertax profits in the form of dividends to the Daily Planet. The U.S. corporate tax rate is 40% of foreign earnings before taxes. a) Compute after-tax cash flow to the Daily Planet from this investment (in reals). Use the following table