Question
A Ghanaian company has a single, wholly owned subsidiary in Nigeria. This affiliate has exposed assets of N800 milllion and exposed liabilities of N500 million.
A Ghanaian company has a single, wholly owned subsidiary in Nigeria. This affiliate has exposed assets of N800 milllion and exposed liabilities of N500 million. The cedi appreciates against the naira N50 per cedi to N80 per cedi.
What is the amount of the translation gain or loss to the Ghanaian company?
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
