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 57 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

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

The Rate Law The Rate Law
Columbian Exchange Columbian Exchange
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
The level of future emissions is closely linked to the rate of population growth The level of future emissions is closely linked to the rate of population growth
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ... The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ...
Video: Mitosis step-by-step

For a complete list of videos, visit our video library