| Exam Name: | Certified Treasury Professional | ||
| Exam Code: | CTP Dumps | ||
| Vendor: | AFP | Certification: | AFP Certification |
| Questions: | 1076 Q&A's | Shared By: | hendrix |
A U.S. based multinational company is filing its U.S. tax return and notes that its U.K. subsidiary had pre-tax income equal to $1 million. The U.K. subsidiary paid an effective tax rate on this income of 40%. If the U.S. tax rate is 34%, what will be the amount of the foreign tax credit on the U.S. tax return related to the U.K. income?
A multinational company owns a United Kingdom subsidiary that has total assets equal to £1 million and intercompany loans due to the parent company equal to $1 million. It would like to undertake a balance sheet hedge of the U.K. subsidiary’s GBP liability because it expects a depreciation of the pound. Given these circumstances, which of the following actions would be appropriate?
A company has negotiated a credit facility with the following terms:
$5,000,000 line of credit
$3,000,000 average borrowing
30 basis point commitment fee on the unused portion of the line
Interest rate on advances is 1-month LIBOR plus 4%
1-month LIBOR is currently 2%
What is the annual interest rate on the line of credit?
TESTED 30 Apr 2025
