Assume that the exchange rate is the equilibrium initially (1 EUR =3.80 SAR). Over the next 3
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Question:
- Assume that the exchange rate is the equilibrium initially (1 EUR =3.80 SAR). Over the next 3 months If home currency (SAUDI) experiences a 5 % inflation, while the foreign country (GERMANY) experiences a 7% inflation, according to relative purchasing power parity condition, what will be new exchange rate with clear steps?
DETERMINE THE CASH FLOW FROM THE FOLLOWING
REVENUE= 200,000
EXPENSES= 100,000
Depreciation= 10,000
Tax (30%)
EBT=?
EAT=?
CASHFLOW=?
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