This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is exchange rate risk? Why would a multinational firm be concerned about it? What will be an ... (Read 43 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
on: Jul 10, 2018
What is exchange rate risk? Why would a multinational firm be concerned about it?
 
  What will be an ideal response?

Question 2

You wish to deposit 7,000 in an account at the Shylock Bank. The bank pays interest at a nominal annual rate of 10 compounded quarterly. What is the future value in the account after seven years?
 
  A) 13,975.47
  B) 13,641.02
  C) 13,336.23
  D) 14,726.68
  E) 14,055.44


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

CourtneyCNorton

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jul 10, 2018
Answer to Question 1

Exchange rate risk is the risk that the value of a firm's operations and investments will be adversely affected by
changes in exchange rates. For example, if U.S. dollars must be converted into euros before making an investment in
Germany, an adverse change in the value of the dollar with respect to the euro will affect the total gain or loss on the
investment when the money is converted back to dollars.

Answer to Question 2

A


biggirl4568

  • Member
  • Posts: 551
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

scikid

  • Member
  • Posts: 300
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Risk Factors of Osteoporosis Risk Factors of Osteoporosis
Total Fertility Rate in Japan: Actual versus Forecast Total Fertility Rate in Japan: Actual versus Forecast
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
Video: Integumentary Anatomy

For a complete list of videos, visit our video library