Tax factors

Whelan Pharmaceuticals, a U.S. company with $3 billion in sales, must decide where to manufacture its newest product. In considering possible sites, both foreign and U.S., the firm must identify and make trade-offs between tax, marketing, and manufacturing factors. what tax issues are relevant in to this company which site would be a favorable?

Non-qualified stock option

Six years ago, Rollo Inc. granted a nonqualified stock option to Mrs. Jacques to buy 5,000 shares of Rollo stock at $15 per share for six years. At the date of grant, Rollo stock was selling on the AMEX for $14.75 per share. This year, Mrs. Jacques exercised the option when the price was $45.10 per share. What formulas can I use to determine how much compensation income did Mrs. Jacques recognize in the year the option was granted and then in the year she excersied the option?

Percentages

Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2003 Sales $ 950 Costs 250 Interest 50 Taxes 150 Net income $ 500 If sales increase by 20 percent in 2004, and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 20 percent), what must be the balancing item? What will be its value? BALANCE SHEET, YEAR-END 2002 2003 2002 2003 Assets $ 2,700 $ 3,000 Debt $ 900 $ 1,000 Equity 1,800 2,000 Total $ 2,700 $ 3,000 Total $ 2,700 $ 3,000 a. Find Eagle's required external funds if it mainta... click for more

Choosing suppliers

topic: suppy chain management --- choosing suppliers Please explain --- in detail --- the following: * What are the useful criteria/considerations one would apply/consider when choosing among suppliers? When allocating capacity among suppliers? * Are domestic and offshore suppliers always a substitute for each other? Are they sometimes complements? When would you use ONLY DOMESTIC outsourcing providers versus situations where you will use ONLY OFFSHORE providers? * What is the logic for the hybrid use of domestic+offshore outsourcing?

Housing / Tax Reform of 1986 (US law)

Overall, what was the effect of the 1986 Tax Reform Act on (affordable) housing? Multi-family housing was being oversupplied before 86, and this act took away some of the tax incentives (on depreciation). So that would seem to be a good thing, no? Yet the professor also said it hurt affordable housing.