The best ways to increase the present value of after-tax remittances from overseas is are to
A)invest parent funds as debt rather than equity
B)borrow in the local currency
C)hedge exchange risk
D)speed up the payment of dividends

Question

Quizplus · Accepted Answer

Investing parent funds as debt rather than equity can increase the present value of after-tax remittances because interest payments on debt are often tax-deductible, reducing the overall tax burden.

The Best Ways to Increase the Present Value of After-Tax