McElroy, Inc. is a U.S. corporation that is expanding its operations into Europe. It is...
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McElroy, Inc. is a U.S. corporation that is expanding its operations into Europe. It is considering two locations. The first location is in a country which imposes a corporate income tax rate of 20%. The other is in a country that imposes a corporate income tax rate of 15% McElroy s analysis suggests that it can generate a 12% pre-tax return on its investment in country 1. Assuming a 20% corporate income tax rate, what would be its after-tax return on investment in this country? (Assume Mckiroy is planning a $50 million investment)
McElroy, Inc. is a U.S. corporation that is expanding its operations into Europe. It is considering two locations. The first location is in a
country which imposes a corporate income tax rate of 20%. The other is in a country that imposes a corporate income tax rate of
15%
McElroy s analysis suggests that it can generate a 12% pre-tax return on its investment in country 1. Assuming a 20% corporate income tax rate,
what would be its after-tax return on investment in this country? (Assume Mckiroy is planning a $50 million investment)
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