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Angelina_Jolie [31]
2 years ago
14

FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but in

stead operates in the U.S. as a branch. Country F does not have a income tax treaty with the U.S. If FORco loans operating funds to the U.S. branch, when the U.S. branch makes interest payment to FORco, the interest payment will be subject to:____.
Business
1 answer:
wariber [46]2 years ago
6 0

Answer:

C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules.

Explanation:

Options are <em>"A. No interest withholding as the interest is deemed paid by the foreign corporation, since the U.S. branch is not a U.S. corporation. B. No interest withholding tax since the recipient of the interest is a foreign corporation. C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules. D. Subject to 15% withholding tax under the Branch Profits tax rules. Reset Selection"</em>

The interest payment will be subject to 30% withholding tax under the Branch Interest Withholding tax rules. Interest paid by a branch's U.S. trade or business, is considered U.S. source income and is subject to U.S. withholding tax at a rate of 30%, unless the tax is reduced or eliminated by a specific treaty or Code provision.

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Creme Bakery just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. If y
alekssr [168]

Answer:

$19.47

Explanation:

The computation of the price paid for share is shown below:

= Year second dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.20 + $2.20 × 2.2%

= $2.20 + $0.0484

= $2.2484

In the year 2 , it is

= $2.2484 × 1.022

= $2.2978648

And, the required rate of return is 14%

Plus the growth rate is 2.2%

So, the price paid for the share is

= ( $2.2978648) ÷ (14% - 2.2%)

= $19.47

7 0
3 years ago
There exists a(n)
FrozenT [24]

Answer:

Direct, upward sloping

Explanation:

Supply refers to the quantities of goods or services that firms are willing to sell to the markets are a specific price. As per the law of supply, an increase in prices leads to an increase in the quantity supplied. Therefore, the relationship between the price and quantity supplied is direct. Firms prefer to supply more products to the markets at higher prices because they will make more profits.

The supply curve is a graphical presentation of the relationship between price and quantity supplied.  The supply curve is upward sloping. It originates from the bottom left corner, showing how quantities vary along the curve at different prices. Quantity supplied increases as the price rise.

7 0
3 years ago
Each of the following is an example of a significant noncash activity except Group of answer choices conversion of bonds into co
Maurinko [17]

Answer: stock dividends

Explanation:

Noncash investing and financing activities are simply referred to as the significant investing and financing activities which doesn't affect cash directly.

The activities involved here include, stockholders equity etc. and they are typically found at bottom of cash flow statement.

Based on the options given, the example of a significant noncash activity will include conversion of bonds into common stock, exchanges of plant assets and the issuance of debt to purchase assets.

Therefore, the correct option will be stock dividends.

4 0
3 years ago
The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders
Arada [10]

Answer:  Has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart.

Explanation:

The better-off test of diversification is that the company must gain a return that is higher than incremental growth. Incremental growth is usually defined a 1 + 1 = 2 formula and this test argues that Diversification must provide more than this such that the company achieves synergistic growth ( 1 + 1 = 3) which is what happens when different entities work better together than alone.

Diversification should therefore be into an area that will be able to match-up with the company's present businesses such that its businesses can perform better together than apart and produce even greater returns.

5 0
3 years ago
If your job at the company is to improve existing products, you are probably using the ________ strategy.
ryzh [129]

If your job at the company is to improve existing products, you are probably using the development strategy.

<h3>What is the development strategy?</h3>

This is the term that is used to do with the actions that would involve the research and the identification of the strategic options in the business. It has to help in such a way that it would provide the resources that would help in the achievement of objectives.

Hence we can say that If your job at the company is to improve existing products, you are probably using the development strategy.

Read more on development strategy here: brainly.com/question/27801561

#SPJ1

6 0
1 year ago
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