User Account

All Pages

Accounting profit to finisterra as an annual cash dividend

Assignment Help Accounting Basics
Reference no: EM131678340

Question: Finisterra, S.A. Finisterra, S.A., located in the state of Baja California, Mexico, manufactures frozen Mexican food that enjoys a large following in the U.S. states of California and Arizona. In order to be closer to its U.S. market, Finisterra is considering moving some of its manufacturing operations to southern California. Operations in California would begin in year 1 and have the following attributes.

1729_7.png

The operations in California will pay 80% of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed up dividends from foreign countries, with a credit for host-country taxes already paid. What is the maximum U.S. dollar price Finisterra should offer in year 1 for the investment?

Reference no: EM131678340

Questions Cloud

Explain the various forms of business combination : Explain the various forms of Business Combination. Discuss the methods of accounting for Investment in Common Stock. Explain the concept of External Expansion?
What is carambola worth in given conditions : What is Carambola worth if the Honduran lempira were to change in value over time according to purchasing power parity?
Identify the first section heading as statement of cash flow : What is the par or stated value per share of Apples common stock - How many shares of common stock were outstanding and Calculate the payout ratio
Discuss to improve the quality of care rendered to patients : Agree with you that the role of a clinical nurse leader is to find ways to improve the quality of care rendered to patients.
Accounting profit to finisterra as an annual cash dividend : The operations in California will pay 80% of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed.
How uncertainties and biases can affect the decision quality : What are the differences between the operating plans and actual operations? Explain how uncertainties and Biases can affect the decision quality?
Discuss about the nurse care of the patient : We owe a lot of our safe practices to the findings done by the clinical nurse leaders.
What advice about project closing is most useful : ovide an example of a project, identifying how the project ended and if the customer was satisfied. What advice about project closing is most useful?
Discuss the reasons of quality control doohicky : Doohicky Devices. Doohicky Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd