Under current tax law, in order to bring the foreign-held cash back into the U.S., they would have to pay the difference between the U.S. corporate tax rate and the taxes already paid in local jurisdictions.
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Finally, and anecdotally, managers say that the heroic cost-cutting that most businesses undertook during the recession and in the years since has largely run its course, leaving Corporate America with far less fat to trim in order to bolster cash-flow margins.
Rajoy has refused to ask for a bailout offered by ECB President Mario Draghi in order to avoid externally-imposed austerity, yet regional governments remain cash-strapped and GDP is expected to continue contracting.
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In order to pump up short-term profits, manufacturers of communications gear loaned money to cash-strapped Internet startups so they could buy switches and routers.
Luckily, with the factory came a stack of Trabi spare parts, which Sachsenring sold at a huge mark-up in order to bring in cash during a hard first year.
Eric and Jessica were far from ready to supply such a big order - mainly because of cash flow problems.
These responsibilities helped it deal with the 2008 crisis: in short order it defended the currency, loaned money to cash-strapped banks, gave forbearance on troubled loans, soothed the bond market and eased banks' capital requirements.
In order to meet the margin calls, a suddenly cash-strapped Harvard has been unloading most of its stock portfolio at fire-sale prices--effectively throwing good money after bad--and selling IOUs bearing interest rates of up to 6.5%, meaning that hefty debt service now makes up a growing percentage of Harvard's budget.
The cash crisis forced Gall and Cooke to rely on purchase-order financing--in essence, factoring receivables before they are even receivable.
Floform's directors had blamed the difficulties on cuts to the firm's order book, which they said had resulted in "significant cash-flow difficulties".
There is a meeting of Euro zone officials Tuesday on when to disburse the next tranche of bailout money to cash-starved Greece, and on what terms Greece will be held in order to receive the money.
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Early next week the EU debt crisis will be in keener focus, as there is a meeting of Euro zone officials next Tuesday on when to disburse the next tranche of bailout money to cash-starved Greece, and on what terms Greece will be held in order to receive the money.
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Many believe capital deployment should follow a "pecking-order theory" that prescribes that managements should apply their cash flow, in order of priority, to fix their balance sheet if overleveraged, fund organic investments, pay dividends, fund acquisitive growth and, only when there is additional cash left over, to distribute it via share repurchases.
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