Economic exposure to exchange rate fluctuations

Assignment Help Finance Basics
Reference no: EM133112842

ABC Corp. is a U.S.-based MNC that has a large government contract with France. The contract will continue for several years and generate more than half of ABC's total sales volume. The French government pays ABC in French Frank. About 10 percent of ABC's oper­ating expenses are in French Frank; all other expenses are in U.S. dollars. Explain how ABC Corp. can reduce its economic exposure to exchange rate fluctuations.

Reference no: EM133112842

Questions Cloud

Increasing the interest rate to all the bonds : What will be the impact of the central bank increasing the interest rate to all the bonds respectively?
Calculate the price of a coupon : Calculate the price of a 5% coupon, $1000 face value 5 year bond that's callable after one year for $1030 if there's an equal chance that interest rates for eac
Calculate irr : If you Invest $2,000 now, receive 3 yearly payments of $100 each, plus $2,500 in the 3rd year. Calculate IRR.
Health promotion program : Research 1 health promotion program of interest to you, such as a supplemental food distribution program for older adults
Economic exposure to exchange rate fluctuations : ABC Corp. is a U.S.-based MNC that has a large government contract with France. The contract will continue for several years and generate more than half of ABC'
Underlying nature and cause of selected issue or disease : Describe the selected issue or disease. Identify the underlying nature and cause of the selected issue or disease.
Calculate the tsr : In order to calculate the TSR (Total Shareholder Return) for a specific period, one just have to adjust the stock price for any stock splits during this period.
Total market value of equity : Would you please help me with the answer and a quick explanation of the difference between the two dates (ex-date vs. announcement date) and their impact?
Health disparity in your community for disease : Explain the SDOH for your community related to this disease or health condition. Identify any health disparity in your community for disease or health condition

Reviews

Write a Review

Finance Basics Questions & Answers

  Xdr corp is expecting a 10 increase in sales next year xdr

xdr corp. is expecting a 10 increase in sales next year. xdr has an inventory balance of 1000000 and uses the percent

  Revoke one-fourth of the trust

On January 15th, Linus transfers property to a trust over which he retains a right to revoke one-fourth of the trust.

  Calculate the year-end balance of the equity investment

At the end of the year, the market value of lane's investment is $9.2 million. Calculate the year-end balance of the equity investment in Trax.

  Detailed financial analysis of my two companies

Detailed Financial Analysis of my two companies, Target and JcPenney. Make sure you calculate all of the appropriate ratios called and be sure to provide at least five years of ratios. Use the Financial Statements for the most recent fiscal y..

  Describe a mixed, or split-plot, factorial design

How many main effects can be tested in a 2 x 2 design? In a 3 x 3 design? In a 2 x 2 x 3 design?

  What is the qm weighted cost of capital

If the cost of common equity for the firm is 17.3% the cost of preferred stock is 10.9%, the beforetax cost of debt is 7.9%, and the firm's tax rate is 35%, what is the QM weighted cost of capital?

  Estimate the appropriate price-sales multiple for longs drug

Longs Drug, a large U.S. drugstore chain operating primarily in Northern California, had sales per share of $122 in 1993, on which it reported earnings.

  Efficient asset utilization in the existing store

The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firm is expecting a 30 percent

  What is the effective interest rate being charged

What is the effective interest rate being charged to the monthly payment subscribers?

  Advantages of localization practices for global product

Provide a list of five (5) advantages of "localization" practices for global product marketing. Be specific. Make sure your answers are.

  Determine the value the start-up company

Determine the value the start-up company if the relevant discount rate is equal to 8%.

  When you use a historical risk premium as your expected

when you use a historical risk premium as your expected future risk premiums what are the assumptions that you are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd