Exchange rate was euros per dollar

Assignment Help Financial Management

Reference no: EM131526762

Last year, the French marketing subsidiary of International Pharmaceuticals Corpo- ration (IPC), a New Jersey–based drug manufacturer, earned 700,000 euros. This year, partly due to a weaker U.S. dollar, the French subsidiary will earn 900,000 euros. Last year, the exchange rate was 1.2 euros per dollar, and this year, it is 1.0 euro per dollar.

Calculate how many U.S. dollars the French subsidiary contributes to IPC’s earnings in each year.

Reference no: EM131526762

Questions Cloud

What is the depreciation expense in two year : A project requires $14,384 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 2 given the following MACRS depreciati

What is the current price of bond : the interest payments are made semi-annually, then what is the current price of the bond?

Make about financial flexibility of the general fund : From a fund balance perspective, what observations would you make about financial flexibility of the general fund?

Maximizing shareholder value and ethical responsibility : How do the costs of the clean up and the fines pertain to a discussion of maximizing shareholder value and ethical responsibility?

Exchange rate was euros per dollar : Last year, the exchange rate was 1.2 euros per dollar, and this year, it is 1.0 euro per dollar.

Options to protect itself against unfavorable price movement : How can California Plastics use futures contracts and/or options to protect itself against unfavorable price movements?

Determine net present value of refunding the old bond issue : Determine the net present value of refunding the old bond issue.

Price of a six-month european put option on the spot value : Calculate the price of a six-month European put option on the spot value of the S&P 500.

Price of six-month european put option on the spot value : Calculate the price of a six-month European put option on the spot value of the S&P 500. The six-month forward price of the index is 1,400,

User Account

All Pages