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MGMT, Inc. does business in the US and Switzerland. The cost and revenue information for MGMT, Inc shown below. Figures shown are in millions. The
MGMT, Inc. does business in the US and Switzerland. The cost and revenue information for MGMT, Inc shown below. Figures shown are in millions. The current exchange rate is CHF.89/$. Measure the Economic Exposure of MGMT by specifying the sensitivity of MGMT's pre-tax cash flow to changes in the value of the Swiss Franc. That is, how much does pre-tax cash flow change for every $ 01 change in the value of the Swiss Franc? Comment briefly on the exposure of MGMT w/r/t the Swiss Franc
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