Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alao opens a subsidiary in New Zealand and its main business is to distribute electric cars in New Zealand. However, you remind the manager that
Alao opens a subsidiary in New Zealand and its main business is to distribute electric cars in New Zealand. However, you remind the manager that EV Direct is still subject to translation exposure. The subsidiary in New Zealand has an asset of NZD 2.5 billion and a liability of NZD 1.5 billion. If the exchange rate were to change from AUD 0.88/NZD to AUD 0.85/NZD, what would be the gain in AUD billion?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started