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MEASURING ECONOMIC EXPOSURE Using the cost and revenue information shown for DeKalb, Inc., determine how the costs, revenue, and cash flow items would be affected
MEASURING ECONOMIC EXPOSURE Using the cost and revenue information shown for DeKalb, Inc., determine how the costs, revenue, and cash flow items would be affected by three possible exchange rate scenarios for the New Zealand dollar NZ$ :
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Assume US sales will be unaffected by the exchange rate. Assume that NZ$ earnings will be remitted to the US parent at the end of the period. Ignore possible tax effects.
REVENUE AND COST ESTIMATES: DEKALB, INC. INMILLIONS OF US DOLLARS AND NEW ZEALANDSalesCost of materialsOperating expensesInterest expenseCash flowDOLLARSUS BUSINESS$$NEWZEALANDBUSINESSNZ$NZS
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