ROI, RI and Multinational Firms. Konekopf Corporation has a division in the United States, and another in

Question:

ROI, RI and Multinational Firms. Konekopf Corporation has a division in the United States, and another in France. The investment in the French assets was made when the exchange rate was $1.20 per euro. The average exchange rate forth year was $1.30 per euro. The exchange rate at the end of the fiscal yearwas$1.38 per euro. Income and investment for the two divisions are:

1. The required return for Konekopf is 10%. Calculate ROI and RI for the two divisions. For the French division, calculate these measures using both dollars and euros. Which division is doing better?

2. What are the advantages and disadvantages of translating the French division information from euros todollars?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...