Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer for b (US, Brazilian Subsidiary, German Subsidiary, & Chinese Subsidiary) Americo's EPS Sensitivity to Exchange Rates (A). Americo is a US -basod multinational manufacturing

answer for b (US, Brazilian Subsidiary, German Subsidiary, & Chinese Subsidiary)
image text in transcribed
Americo's EPS Sensitivity to Exchange Rates (A). Americo is a US -basod multinational manufacturing firm with wholly-owned subsicliaries in Brazi. Germany, and China, in addilion to domastic operations in the United States. Armerico is traded on the NASDAQ. Americo currently has 658.000 shares outstanding The basic operating charactefestics of the various business units are as folows (Click on the . icon to import the table into a spreadsheet) Americo must pay corporate income tax in each country in which it currentey has operations. a. After deducting taxes in each country, what are Americo's consolidated eamings and consolidated eamings per share in U.S. dollars? b. Assume a major political ciss wracks Brazil, first aflecting the value of the Brazian teais and. subsequently, inducing an economic recession within the country. What would be the impact on Americo's consoldated EPS if the Braz ialan reais were to fall in value to R\$2 9131/5, with all other earnings and exchange rates remaining the same? 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 belows (Round to two decimal phices. Round exchange rates to four decimal) places.) The consoldated earrings per share is $ (Round to the nearest cent) Avg exchange rate for the period (f Nof profits of indidual subsidiary b. Assume a major polisical crishs wracks Brazil. first allecting the value at the Brazian reais and. nubsequenty inducing an economic recession within the country. What would be the mpact on Americo's consclidated EPS if the Brazilian reais were to tail in value to R529131/\$. with all other earnings and exchange sates remaining the same? Calculate the business performance per country bolow: (Round to two decienal places. Round exchange rates fo four decimal placess)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

4th International Edition

0132912813, 9780132912815

More Books

Students also viewed these Finance questions

Question

4.3 Describe the job analysis process and methods.

Answered: 1 week ago