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NEW QUESTION 34
A company in country T is considering either exporting its product directly to customers in country P or establishing a manufacturing subsidiary in country P.
The corporate tax rate in country T is 20% and 25% tax depreciation allowances are available
Which TIIRCC of the following would be considered advantages of establishing a subsidiary in country T?

A. There are high customs cuties payable of products entering country P.B. Year 1 tax depreciation allowances of 100% are available in country P.C. There are restrictions on companies wishing to remit profit from country PD. The corporate tsx rate in country P is 40%.E. There is a double tax treaty between country T and country P.

Answer: A,B,E

 

NEW QUESTION 35
A company has a cash surplus which it wishes to distribute to shareholders by a share repurchase rather than paying a special dividend.
Which THREE of the following statements are correct?

A. The share repurchase could send a negative signal to shareholders as it could be interpreted as a failure of management to find suitable investment opportunities.B. Determination of the repurchase price will be easy as shareholders will insist on receiving the open market price.C. The payment of a special dividend could raise shareholders' expectations of similar distributions in the future, unlike a share repurchase.D. The share repurchase, if approved by the shareholders, will be binding on all of the company's shareholders.E. Different tax regimes could result in shareholders having a preference for a share repurchase due to the often more preferential tax treatment of capital gains.

Answer: A,C,E

 

NEW QUESTION 36
The ex div share price of a company's shares is $2.20.
An investor in the company currently holds 1,000 shares.
The company plans to issue a scrip dividend of 1 new share for every 10 shares currently held.
After the scrip dividend, what will be the total wealth of the shareholder?
Give your answer to the nearest whole $.
$ ? .

A. 0B. 1

Answer: B

 

NEW QUESTION 37
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