EuroVirtuals EPS Sensitivity to Exchange Rates (B). Assume a major weather crisis hits Switzerland, reducing its agricultural

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EuroVirtual’s EPS Sensitivity to Exchange Rates

(B). Assume a major weather crisis hits Switzerland, reducing its agricultural and food industries and subsequently leading to a macroeconomic recession, and by extension weakening the Swiss franc. What would be the impact on EuroVirtual’s consolidated EPS if, in addition to the fall in the value of the franc to CHF 1.2/€, earnings before taxes in Switzerland fell as a result of the recession by half?

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