Posted by: Pdfprep
Post Date: January 10, 2021
CORRECT TEXT
A company in Country M owns a subsidiary in Country O valued at OS200 million. The rate of exchange between the Country M dollar (M$) and the Country O dollar (OS) is OS1 – MS6
If the Country M S depreciated by 10% what would be the increase or decrease in the MS valuation of the subsidiary?
Give your answer in whole millions and indicate whether it is an increase or decrease.
Answer: M$120 million decrease
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