Sanyo produces audio and video consumer goods and exports a large fraction of its output to the

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Sanyo produces audio and video consumer goods and exports a large fraction of its output to the United States under its own name and the Fisher brand name. It prices its products in yen, meaning that it seeks to maintain a fixed price in terms of yen. Suppose the yen moves from USD/JPY = 107.19 to USD/JPY = 118.00. What currency risk did Sanyo face? How could it reduce its exposure?

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Fundamentals Of Corporate Finance

ISBN: 9781264101566

11th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus

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