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Americo's Earnings and the Fall of the Dollar. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany. Prin China, in addition

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Americo's Earnings and the Fall of the Dollar. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany. Prin China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 660,000 shares outstanding. The basic operating characteristics of the various business units is 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) (US$) (RS) Earnings before taxes (EBT) $4,570 R$6,270 4,510 2,400 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.7835/$ 0.7518/S 7.7153/$ Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. 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 Americo's consolidated EPS if all foreign currencies were to appreciate 22% against the U.S. dollar? c. What would be the impact on Americo's consolidated EPS if all foreign currencies were to depreciate 22% against the U.S. dollar? a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent German Subsidiary Chinese Subsidiary Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ Brazilian Subsidiary 6270 1567.5 Company 4,570.00 R$ (1,599.50) RS S $ 2,970.50 RS 4702.5 Avg exchange rate for the period (fc/$) Net profits of individual subsidiary $ 2.970.50 $ $ $ The consolidated earnings per share is $ (Round to the nearest cent.) b. What would be the impact on Americo's consolidated EPS if all foreign currencies were to appreciate 22% against the U.S. dollar? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) Chinese U.S. Parent Company Brazilian Subsidiary German Subsidiary Subsidiary R$ Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ $ R$ v $ R$ Avg exchange rate for the period (fc/5) Net profits of individual subsidiary $ $ $ The consolidated earnings per share is $ (Round to the nearest cent.) The EPS change from baseline is %. (Round to one decimal place.) Americo's Earnings and the Fall of the Dollar. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany. Prin China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 660,000 shares outstanding. The basic operating characteristics of the various business units is 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) (US$) (RS) Earnings before taxes (EBT) $4,570 R$6,270 4,510 2,400 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.7835/$ 0.7518/S 7.7153/$ Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. 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 Americo's consolidated EPS if all foreign currencies were to appreciate 22% against the U.S. dollar? c. What would be the impact on Americo's consolidated EPS if all foreign currencies were to depreciate 22% against the U.S. dollar? a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent German Subsidiary Chinese Subsidiary Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ Brazilian Subsidiary 6270 1567.5 Company 4,570.00 R$ (1,599.50) RS S $ 2,970.50 RS 4702.5 Avg exchange rate for the period (fc/$) Net profits of individual subsidiary $ 2.970.50 $ $ $ The consolidated earnings per share is $ (Round to the nearest cent.) b. What would be the impact on Americo's consolidated EPS if all foreign currencies were to appreciate 22% against the U.S. dollar? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) Chinese U.S. Parent Company Brazilian Subsidiary German Subsidiary Subsidiary R$ Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ $ R$ v $ R$ Avg exchange rate for the period (fc/5) Net profits of individual subsidiary $ $ $ The consolidated earnings per share is $ (Round to the nearest cent.) The EPS change from baseline is %. (Round to one decimal place.)

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