Question: Americo is a U.S.-based multinational manufacturing firm with whollyowned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 650,000 shares outstanding. The basic operating characteristics of the various business units is as follows:

Business Performance             U.S. Parent              Brazilian Subsidiary            German Subsidiary         Chinese Subsidiary
(000s, local currency)          Company (US$)                (reais, R$)                             (euros, €)                         (yuan, ¥)

Earnings before taxes                $4,500                        R$6,250                            €4,500                          ¥2,500
(EBT)

Corporate income tax                  35%                            25%                                 40%                             30%
rate

Average exchange                       -                             R$1.80/$                           €0.7018/$                       ¥7.750/$
rate for the period

Americo Industries' Consolidate Earnings. Americo must pay corporate income tax in each country in which it currently has operations.

a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars?

b. What proportion of Americo's consolidated earnings arise from each individual country?

c. What proportion of Americo's consolidated earnings arise from outside the United States?