Problem 1.6 Luzon Industries' Consolidated Results Problems 6 through 10 are based on Luzon Industries. Luzon is a U.S.-based multinational manufacturing firm, with wholly owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Luzon is traded on the NADSAQ. Garrison currently has 650,000 shares outstanding. The basic operating characteristics of the various business units are as follows: (1) (2) (3) (4)The U.S. dollar has experienced significant swings in value against most of the world's currencies in recent years. What would be the impact on Luzon’s consolidated EPS if all foreign currencies were to appreciate 20% or depreciate 20% against the U.S. dollar? (5)All MNEs attempt to minimize their global tax liabilities. Return to the original set of baseline assumptions and answer the following questions regarding Luzon’s global tax liabilities. A: What is the total amount – in U.S. dollars – which Luzon is paying across its global business in corporate income taxes? B: What is Luzon's effective tax rate (total taxes paid as a proportion of pre-tax profit)? C: What would be the impact on Luzon’s EPS and global effective tax rate if Germany instituted a corporate tax reduction to 28%, and Luzon’s earnings before tax in Germany rose to €5,000,000?