Nexus Tech Nexus Tech's Earnings and the Fall of the Dollar. Nexus Tech 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. Nexus Tech is traded on the NASDAQ. Nexus Tech currently has 655,000 shares outstanding. The basic operating characteristics of the various business units is as follows: must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? The dollar has experienced significant swings in value against most of the world's currencies in recent years. b. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to appreciate 18% against the U.S. dollar? c. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to depreciate 18% against the U.S. dollar? Avg exchange rate for the period (fc/$) Net profits of individual subsidiary 3,515.50 $ The consolidated earnings per share is $ 16.53 (Round to the nearest c b. What would be the impact on Nexus Tech's consolidated EPS if all forei Calculate the business performance per country below: (Round to two de Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary Avg exchange rate for the period (fc/$) Net profits of individual subsidiary U.S. Parent Company Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,450 21% Brazilian Subsidiary (reais, R$) R$6,300 25% R$1.7252 $1.00 German Subsidiary (euro, €) €4,460 40% €0.6156 = $1.00 Print Done example Get more help Chinese Subsidiary (yuan, \) ¥2,540 30% ¥7.6895 = $1.00 Clear all Check answer

Nexus Tech Nexus Tech's Earnings and the Fall of the Dollar. Nexus Tech 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. Nexus Tech is traded on the NASDAQ. Nexus Tech currently has 655,000 shares outstanding. The basic operating characteristics of the various business units is as follows: must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? The dollar has experienced significant swings in value against most of the world's currencies in recent years. b. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to appreciate 18% against the U.S. dollar? c. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to depreciate 18% against the U.S. dollar? Avg exchange rate for the period (fc/$) Net profits of individual subsidiary 3,515.50 $ The consolidated earnings per share is $ 16.53 (Round to the nearest c b. What would be the impact on Nexus Tech's consolidated EPS if all forei Calculate the business performance per country below: (Round to two de Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary Avg exchange rate for the period (fc/$) Net profits of individual subsidiary U.S. Parent Company Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,450 21% Brazilian Subsidiary (reais, R$) R$6,300 25% R$1.7252 $1.00 German Subsidiary (euro, €) €4,460 40% €0.6156 = $1.00 Print Done example Get more help Chinese Subsidiary (yuan, \) ¥2,540 30% ¥7.6895 = $1.00 Clear all Check answer

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 27P

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