Discuss the impact on a company

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The U.S. corporate income tax rate at 35% is the highest in the developed world.  It is also one of very few countries that require companies to pay that rate on worldwide income, although companies can defer the tax bill until they bring the money home.  A study published in 2015 estimated that $2.1 trillion is held outside the country, which would generate an estimated $690 in taxes if repatriated to the U.S.

Discuss the impact on a company's:

  • Cost of capital
  • Return to stockholders
  • Price of its products to consumers in the U.S.

Reference no: EM131388020

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