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 22 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

LegendaryAnswers

  • Member
  • Posts: 341
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Visualization of heat exchange in an ectotherm and an endotherm. Visualization of heat exchange in an ectotherm and an endotherm.
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
CHD Risk Factors CHD Risk Factors
Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011 Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011
Risk Factors for NSAID-Induced Gastrointestinal Ulcers Risk Factors for NSAID-Induced Gastrointestinal Ulcers
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Video: Interview with an Anorexic Woman (Part 1 of 2)

For a complete list of videos, visit our video library