Daisan Company is in the process of deciding where to establish a European manufacturing operation: France, Spain, or Sweden. Daisan's home country does not have a tax treaty with any of these countries. Regardless of location, the operation is expected to generate pretax income of 1 million euros annually. The operation will distribute 100 percent of its after-tax income to Daisan Company as a dividend each year. Required:

a. Using the information on effective tax rates and withholding tax rates , determine the net amount of dividend that Daisan would receive annually from an investment in each of these three countries.

b. With maximizing after-tax dividends as the sole criterion, in which of the three countries should Daisan locate its European operation?