Solved: The companys combined federal and state income tax rate is, Basic Statistics

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The companys combined federal and state income tax rate is

A French company has an account payable to an affiliated US company in 90 days. The amount of the payable is €500,000. The spot exchange rate for the euro is EUR/USD 1.2131. The company's combined federal and state income tax rate is 25%; the French corporate income tax rate is 33%. The company expects the exchange rate for the euro to decline to 1.2030 prior to the account's due date. When should the company make the payment? Explain.

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Basic Statistics: The companys combined federal and state income tax rate is

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