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Answer questions 3 through 7 based on the following information: Suppose that McDonald's overseas sales revenue in Europe totaled 100.00 billions in 2018 and is

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Answer questions 3 through 7 based on the following information: Suppose that McDonald's overseas sales revenue in Europe totaled 100.00 billions in 2018 and is predicted to grow to 105.50 billions in 2019. The spot exchange rate was $1.20 per euro in 2018 and is predicted to be $1.10 per euro by the end of 2019 3. From 2018 to 2019, McDonald's overseas sales revenue is predicted to in euros and in dollars. 5 ,5 6. Suppose that the forward exchange rate is quoted currently at $1.15 per euro. Suppose that McDonald's management is risk averse and is pretty much unsure about the end-of-year dollar/euro exchange rate. If McDonald hedges the foreign exchange risk by entering a forward-exchange con- tract based on the currently quoted forward exchange rate, the predicted growth rate of McDonald's overseas dollar-denominated revenue is about A) 1.10% B) 2.20% C)-0.05% D) none of the above 7. To hedge the foreign exchange risk as described in question 6, McDonald management should enter a forward contract in in 2019. to sell for to be delivered A) 2018; C105.50 billions; $121.325 billions B) 2018; $121.325 billions; 105.50 billions. C) 2019; 105.50 billions; $121.325 billions. D) 2019; $121.325 billions; 105.50 billions

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