Questions from Corporate Finance

Q: How do tax treaties affect the operations and structure of MNEs?

How do tax treaties affect the operations and structure of MNEs?

Q: Why do the U.S. tax authorities tax passive income

Why do the U.S. tax authorities tax passive income generated offshore differently from active income?

Q: What is meant by the term “tax morality”?

What is meant by the term “tax morality”?

Q: Capital budgeting for a foreign project uses the same theoretical framework as

Capital budgeting for a foreign project uses the same theoretical framework as does domestic capital budgeting. What are the basic steps in domestic capital budgeting?

Q: a. Define the term “tax neutrality.” b.

a. Define the term “tax neutrality.” b. What is the difference between domestic neutrality and foreign neutrality? c. What are a country’s objectives when determining tax policy on foreign-source inc...

Q: Nations typically structure their tax systems along one of two basic approaches

Nations typically structure their tax systems along one of two basic approaches: the worldwide approach or the territorial approach. Explain these two approaches and how they differ from each other.

Q: Define in words (without graphics) how the optimal domestic portfolio

Define in words (without graphics) how the optimal domestic portfolio is constructed.

Q: If the primary benefit of portfolio diversification is risk reduction, is

If the primary benefit of portfolio diversification is risk reduction, is the investor always better off choosing the portfolio with the lowest expected risk?

Q: When asked why they do not internationally diversify their portfolios, answer

When asked why they do not internationally diversify their portfolios, answer that “the risks are not worth the expected returns.” Using the theory of international diversification, how would you eval...

Q: The benefits of portfolio construction, domestically or internationally, arise from

The benefits of portfolio construction, domestically or internationally, arise from the lack of correlation among assets and markets. The increasing globalization of business is expected to change the...