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Find what would rasta fx equity exposure be

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Reference no: EM132701774

Problem 1: Rasta Inc. has a market equity of USD 400 million. Rasta also has USD 120 million in USD-denominated net debt and USD 40 million in EUR-denominated net debt. Rasta's FX business exposure to the EUR is 1.80. What would Rasta's FX equity exposure be if the company would issue/raise an additional (new) USD 30 million in EUR-denominated debt?

Group of answer choices

Option 1: 2.48

Option 2: 2.73

Option 3: 2.98

Option 4: 2.69

Reference no: EM132701774

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