America's Earnings and the Fall of the Dollar. America is a US-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, In addition to domestic operations in the United States Americo is traded on the NASDAQ. Americo currently has 650.000 shares outstanding. The basic operating characteristics of the various business units are as follows: (Click on the conto import the table into a spreadsheet Brazilian German Chinese U.S. Parent Business Performance (000) Subsidiary Subsidiary Subsidiary (USS) (R$) (6) M Earnings before taxes (CBT) 54.430 R$6,190 4,560 12.490 Corporate Income tax rate 215 25% 40% 30% Average exchange rate for the period R$1.8677/5 10.6215 17.74935 America must pay corporate income tax in each country in which is currently has operations a. After deducting taxes in each country, what are America's consolidated camnings and consolidated earings per share in US dollars? The dollar has experienced significant wings in value against most of the world's currencies in recent years b. What would be the impact on America's consolidated EPS if all foreign currencies were to appreciate 19% against the US dollar c. What would be the impact on America's consolidated EPS i all foreign currencies were to depreciate 19% against the US dollar a. After deducting taxes in each country, what are America's consolidated earings and consolidated carings per share in US dollars? Calculate the business performance per country below (Round to two decimal places. Round exchange rates to four decimal places) U.S. Parent Business Performance 1000s) Company Earnings before taxes (local currency 5 Less corporate income taxes $ Net profits of individual subsidiary SI Avg exchange rate for the period (0/5) Net profits of individual subsidiary America's Earnings and the Fall of the Dollar. Americo is a US-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil. Germany, and China, in addition to domestic operations in the United States Americo is traded on the NASDAQ Americe currently has 650.000 shares outstanding. The base operating characteristics of the various business units are as follows: (Click on the icon to import the table into a spreadsheet) Brazilian German Chinese U.S. Parent Subsidiary Subsidiary Subsidiary Business Performance (000s) (USS) (RS) (0) Earnings before taxes (EBT) R56,190 64560 2010 Corporate income tax rate 21% 30% Average exchange rate for the period R$10677/5 60 6215 17.74935 America must pay corporate income tax in each country in which it currently has operations 2. After deducting taxes in each country, what are America's consolidated earnings and consolidated earnings per share in US dollars? The dollar has experienced significant swings in value against most of the world's currencies in recent years b. What would be the impact on America's consolidated EPS if a foreign currencies were to appreciate 19% against the US dollar? c. What would be the impact on America's consolidated EPS i all foreign currencies were to depreciate 19% against the US dollar? 2. Aher deducting taxes in each country, what are America's consolidated earnings and consolidated earnings per share in US dollars? Calculate the business performance per country below (Round to ho decimal places. Round exchange rates to four decimal places) U.S. Parent Business Performance (0008) Company Earnings before taxes (local currency) Less corporate Income taxes Nut profits of individual subsidiary Avg exchange rate for the period (f/5) Net profits of individual tubdary
