Scheweser SS10 Reading 35 Page 43 Challenge Probs, question 10 According to answer at page 46 net US dollar dividents = 5000 X Euro 0.4 X $1.610/euro x 0.85 = $2737.00 foreign investment divident is not subject to transaction fee and commision. Is this statement right? thanks for your time.
Correct - because CFA assumes frictionless world. Foreign investment dividend is subjected to witholding tax by the foreign Govt and which gets recashed by the Investors home country Govt in the form of tax credit on witholding tax.