IBUS 618 Week 10 Assignment Help | KSBAU

IBUS 618 Week 10 Assignment Help | KSBAU


·        What were the benefits to Microsoft’s shareholders of using cash held overseas to purchase Skype?

 

·        Microsoft’s effective tax rate on foreign earnings retained overseas appears to be only 4 percent. How this is possible given the corporate tax rate in most developed countries where Microsoft earns profits from foreign sales are considerably higher?

 

·        Why does Microsoft continue to hold so much cash overseas, rather than returning it to the United States? What do you think are the opportunity costs of holding tens of billions of dollars in cash in foreign locations? What potential benefits might accrue to Microsoft shareholders if it returned some of that cash to the United States?

 

·        Do you think it is ethical for companies like Microsoft to continue to hold cash overseas in order to avoid paying U.S. corporate income taxes? Is this practice always in the best interests of the company’s shareholders?

 

 

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