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traded on the NASDAQ. Americo currently has 660,000 shares outstanding. The basic operating characteristics of the various business units is as follows: (Click on the
traded on the NASDAQ. Americo currently has 660,000 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.) Chinese Subsidiary Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,470 35% Brazilian Subsidiary (R$) R$6,180 25% R$ 1.7809/$ German Subsidiary () 4,520 40% 0.7989/$ 2,570 30% 7.6746/$ 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 Americo's consolidated EPS if all foreign currencies were to appreciate 21% against the U.S. dollar? c. What would be the impact on Americo's consolidated EPS if all foreign currencies were to depreciate 21% against the U.S. dollar
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