Duke Inc. is a U.S. producer of spicy cheese products. Duke's balance sheet has USD 200 million in equity, USD 20 million in USD-denominated net debt, and USD 40 million in EUR-denominated  net debt. Duke's business exposure to the EUR is 1.20. 

If Duke Inc. would issue USD 60 million of new EUR-denominated net debt in addition to its existing debt, what would the company's new FX equity exposure be?

Answer rating: 100% (QA)

SOLUTION IN DETAILS To calculate Duke Incs new FX equity exposure after issuing USD 60 million of ne... View the full answer