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Business, 15.04.2021 20:10 johara

1) Your company is opening some subsidiaries in several countries. For the subsidiary in each country, discuss the advantages of getting additional financing with debt or equity, internally or externally, and by the parent or subsidiary. Assume your marginal corporate tax rate is 35% in the US. a) The branch office in Sweden where the marginal tax rate is 60%. b) The branch office in Hong Kong where the marginal tax rate is 10%. c) Now assume that UIP holds for Korea, where the interest rate you would borrow at is 20%, and the currency is expected to depreciate by 10%. You can borrow at 10% in US dollars. Should the parent or the subsidiary do the borrowing

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1) Your company is opening some subsidiaries in several countries. For the subsidiary in each countr...
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