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 60 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
:D TYSM

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Feedforward control of breathing rate in an animal trained for athletic exercise. Feedforward control of breathing rate in an animal trained for athletic exercise.
Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
Conduction and gas exchange structures and functions. Conduction and gas exchange structures and functions.
The rate of facilitated diffusion The rate of facilitated diffusion
Soils support plant growth through ion exchange Soils support plant growth through ion exchange
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 ...
Video: Bone processes - resorption and deposition, remodeling and response to stress in adult bones

For a complete list of videos, visit our video library