a) What is the MYR/Euro exchange rate on 1 July 2020? c) How much is the contribution of Lok Kee Sdn. Bhd.s translation exposure (in Euro) to its parent company, Rookie A.G. on 30 June 2020 using the current rate method? (4 marks)

1. Lok Kee Sdn. Bhd. is a Malaysian subsidiary of Rookie A.G., a MNE established in Germany. Rookie's consolidated financial statements are kept in euro. All of Lok Kee's previous earnings were reinvested as capital. The balance sheet of Lok Kee on 30 June 2020 is in the following: Assets MYR Liabilities & Net Worth MYR Cash 8,250,000 Accounts payable 12,375,000 Accounts receivable 16,500,000 Long-term debt 24,750,000 Inventory 24,750,000 Invested capital 45,375,000 Net plant & equipment 33,000,000 Total 82,500,000 Total 82,500,000 On 30 June 2020, the exchange rate was MYR5.00/Euro. On 1 July 2020, the Euro has suddenly appreciated by 10% against the MYR