Transfer pricing has been used by multinational corporation

Assignment Help Financial Management
Reference no: EM131562478

1. A documentary credit is issued to importer to pay exporter for an amount of GBP 40,000 payable with drafts drawn at 30 days from the date of shipment. Document is presented with bills of lading. This is an example of:

a. Export netting

b. Swap contract

c. Letter of credit

d. Future contract

And why?

2. Transfer pricing has been used by multinational corporation to:

a. Minimize tax payments in foreign countries

b. Minimize import tariffs

c. Minimize foreign exchange controls

d. All of the above are correct.

And why?

Reference no: EM131562478

Questions Cloud

Project incorrigible has an initial cost : Project Incorrigible has an initial cost, and then generates cash inflows of $50 a year for the next five years.
Expected long-run growth rate for this stock : If the expected long-run growth rate for this stock is 4.25 percent and if investors require an 18 percent rate of return, what is the price of the stock today?
Interest rates on eurodollar loans may be lower : Interest rates on Eurodollar loans may be lower than those on loans in the U.S. because:
Call option with strike price less than current spot price : A call option with a strike price less than the current spot price is said to be _____.
Transfer pricing has been used by multinational corporation : Transfer pricing has been used by multinational corporation to.
An advantage of netting of multinational corporation : An advantage of netting of a multinational corporation and its subsidiaries is that it:
What will be the value of the pound payable in us dollars : What will be the value of the pound payable in U.S. dollars, if the U.S. firm exercises the option?
Arithmetic average return on each stock over period : What was the arithmetic average return on each stock over this period?
Case study taco bell and how to build a business case : Case study "Taco Bell" and "How to Build a Business Case" Build a business case template

Reviews

Write a Review

Financial Management Questions & Answers

  Company is now adopting a new inventory system

Williams & Sons last year reported sales of $5 million and an inventory turnover ratio of 3. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover..

  Should the firm conduct test marketing

Decision Trees Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $34 million. If the DVDR fails, the present value of the payoff is $12 million. The ..

  What is the future value of his investment cash flows

Chuck Brown will receive from his investment cash flows of $3,155, $3,500, and $3,850 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..

  What is the bank maturity gap

A bank has duration of assets of 3.96, total assets of $181 million, duration of liabilities of 4.8, total equity equal to 9.5% of total assets, rate-sensitive assets of $76.75 million, and rate-sensitive liabilities of $50.8 million. What is the ban..

  Calculate how many ducats each would receive

A man was on his deathbed, and wanted to settle his estate with a will. calculate how many ducats each would receive.

  Paid prior to paying dividends to common stockholders

A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 7 percent annual dividend. The firm also has 15,000 shares of common stock outstanding. If the stock is cumulative and the board of directors has passed t..

  Calculate the metrics of capital budgeting

Identify relevant incremental cash flows - Calculate cost of capital (k-wacc) to use as the discount rate and calculate the metrics of capital budgeting: Net Present Value, Profitability Index,

  Does the function exhibit positive marginal utility

Given the exponential utility function U(W) = - a) Graph the function, assuming a > 0. - Does the function exhibit-positive marginal utility and risk aversion?

  What is the apr of the loan

You have arranged for a loan on your new car that will require the first payment today. The loan is for $35,500, and the monthly payments are $660. If the loan will be paid off over the next 63 months, what is the APR of the loan?

  What probability that year one net cash flows will negative

The management of Greensboro Products has been evaluating the risk of the cash flows associated with a proposed new project. What is the probability that year 1 net cash flows will be negative?

  What are current assets

McConnell Corp. has a book value of equity of $13,205. Long-term debt is $8,200. Net working capital, other than cash, is $3,205. Fixed assets are $17,380. How much cash does the company have? If current liabilities are $1,630, what are current asset..

  Problem regarding the pv of the cash flow

You own an oil pipeline that generates $780,000 cash flow over the next year. The pipeline's operating costs are negligible and it is expected to last for a very long time. The interest rate is 4.45% but the volume of oil is expected to decline by..

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!

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