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Teko is a German home appliance distributor. Although Teko imports from companies around the world, its biggest suppliers are in Britain. E denominated accounts (shown
Teko is a German home appliance distributor. Although Teko imports from companies around the world, its biggest suppliers are in Britain. E denominated accounts (shown in italics) have been translated into s at the 1.40/ exchange rate. value value f value value - 6000 15000 Payables in Es Payables 10714 13000 Cash in Es Cash Receivables Receivables in Es Inventory 4286 11429 15000 7143 14000 10000 Current Assets 51857 Current liabilities Debt in s Debt 17000 23714 12143 8000 Nonmonetary assets Total Assets 20000 12000 63857 Net worth Total Liabilities 63857 Part 1: What is the value of monetary assets and monetary liabilities exposed to ? What is the value of net exposed monetary assets? If appreciates by 8%, by how much will monetary assets change in value? By how much will monetary liabilities change in value? Part 2: Suppose inventory is not exposed to and that the exposure of nonmonetary assets is B(E ) =-0.8. If rises in value by 6%, by how much are Teko's equity likely to change in value? Teko is a German home appliance distributor. Although Teko imports from companies around the world, its biggest suppliers are in Britain. E denominated accounts (shown in italics) have been translated into s at the 1.40/ exchange rate. value value f value value - 6000 15000 Payables in Es Payables 10714 13000 Cash in Es Cash Receivables Receivables in Es Inventory 4286 11429 15000 7143 14000 10000 Current Assets 51857 Current liabilities Debt in s Debt 17000 23714 12143 8000 Nonmonetary assets Total Assets 20000 12000 63857 Net worth Total Liabilities 63857 Part 1: What is the value of monetary assets and monetary liabilities exposed to ? What is the value of net exposed monetary assets? If appreciates by 8%, by how much will monetary assets change in value? By how much will monetary liabilities change in value? Part 2: Suppose inventory is not exposed to and that the exposure of nonmonetary assets is B(E ) =-0.8. If rises in value by 6%, by how much are Teko's equity likely to change in value
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