Assume a Firm Has $5 Million of Overseas Profits That

question 43

Multiple Choice

Assume a firm has $5 million of overseas profits that are invested in U.S. financial assets. These profits have not been repatriated. Given this, the firm is prohibited from using any of the $5 million to:

• A) build a new factory in Europe.
• B) pay bonuses to its foreign managers.
• C) acquire new equipment for installation in its Asian plant.
• D) pay dividends.
• E) invest in euros.

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Definitions:

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