"The U.S. dollar has experienced significant swings in value against most of the world's currencies in recent years.
a. What would be the impact on Americo€™s consolidated EPS if all foreign currencies were to appreciate 20% against the U.S. dollar?
b. What would be the impact on Americo€™s consolidated EPS if all foreign currencies were to depreciate 20% against the U.S. dollar?"
Americo is a U.S.-based multinational manufacturing firm, with wholly owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 650,000 shares outstanding. The basic operating characteristics of the various business units are as follows:

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U.S. Parent Brazilian Ge Chinese Company Subsidiary Subsidiary Subsidiary (vuan, Y) (reais, RS) (euros, Business Performance (000s, local currency) (USS Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period 4,500 Y2,500 40% $4,500 RS6,250 3000 25% R$1.80 S 0.7018/S Y7.750/S 3590