What is the fx equity exposure of q-tech inc

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Q-Tech Inc is a U.S.-based importer of European soccer gear. Q-Tech's financials are the following: Enterprise value USD 50 million; total net debt USD 12 million out of that USD 2 million are EUR-denominated net debt. Assume that FX business exposure to the EUR is -1.40. Q-Tech also has a long position on a 3-year fixed-for-fixed USD/EUR swap with a notional of USD 5 million (assume this is an at-market swap). What is the FX equity exposure of Q-Tech Inc.?

Reference no: EM132477842

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