Two requirements for transaction exposure

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Reference no: EM131904315

1. The two requirements for transaction exposure are:

The functional currency must be that of the local currency

The company must be a multinational corporation

There must be a financial obligation

The involvement of a foreign currency

The company must use FASB #8 for its translation of foreign assets and liabilities

2. If the returns on Stock A are as follows: Year 1 return = 38 %, Year 2 return = -7 %, Year 3 return = -3 %, Year 4 return = 12 %, and Year 5 return = 39 %, what is the average return for Stock A over this 5 year period? (Record your answer as a percent rounded to 1 decimal place. If your answer is negative, place a minus sign before your number with no space between the sign and the number. For example, record negative 14.284% as -14.3).

Reference no: EM131904315

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