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l 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, and China, in

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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, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 641,000 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) (USS) (R$) ) () Earnings before taxes (EBT) $4,500 R$6,160 4,550 V2,580 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.8752/$ 0.6221/$ 7.8127/$ 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 America's consolidated EPS if all foreign currencies were to appreciate 21% against the U.S. dollar? What will ha tha innant an America's monolidated EDS if all forainn nirranrico wara ta danrariata 2104 anainot that I 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 Company $ Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ $ Avg exchange rate for the period (fc/$) Net profits of individual subsidiary (R$) $ Please copy and paste data from text area below. Selected delimiter: Tab Business Performance (000s) U.S. Parent (US$) Brazilian Subsidiary German Subsidiary (C) Chinese Subsidiary () *DTI Earnings before taxes (EBT) $4,500 R$ 6,160 4,550 2,580 Corporate income tax rate 358 25% 40% 30% Average exchange rate for the period R$ 1.8752/$ 0.6221/$ 7.8127/$ Done 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, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 641,000 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) (USS) (R$) ) () Earnings before taxes (EBT) $4,500 R$6,160 4,550 V2,580 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.8752/$ 0.6221/$ 7.8127/$ 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 America's consolidated EPS if all foreign currencies were to appreciate 21% against the U.S. dollar? What will ha tha innant an America's monolidated EDS if all forainn nirranrico wara ta danrariata 2104 anainot that I 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 Company $ Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ $ Avg exchange rate for the period (fc/$) Net profits of individual subsidiary (R$) $ Please copy and paste data from text area below. Selected delimiter: Tab Business Performance (000s) U.S. Parent (US$) Brazilian Subsidiary German Subsidiary (C) Chinese Subsidiary () *DTI Earnings before taxes (EBT) $4,500 R$ 6,160 4,550 2,580 Corporate income tax rate 358 25% 40% 30% Average exchange rate for the period R$ 1.8752/$ 0.6221/$ 7.8127/$ Done

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