Question: I need help with B and C only. If you can please show me how you went about changing the appreciation amount, that would be
I need help with B and C only. If you can please show me how you went about changing the appreciation amount, that would be helpful for me to learn. Thank you! 
b. What would be the impact on Americo's consolidated EPS if all foreign currencies were to appreciate 21% against the U.S. dollar? c. What would be the impact on Americo's consolidated EPS if all foreign currencies were to depreciate 21% against the U.S. dollar? Americo's Earnings and the Fall of the 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 is as follows: (Click on the icon to import the table into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (USS) $4,480 35% Brazilian Subsidiary (RS) R$6,270 25% R$1.896/$ German Subsidiary () 4.460 40% 0.663215 Chinese Subsidiary (V) 2.580 30% 97.7273/$ b. What would be the impact on Americo's consolidated EPS if all foreign currencies were to appreciate 21% against the U.S. dollar? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent Brazilian Subsidiary $ Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary Company 4,480.00 R$ (1,568.00) RS 2,912.00 R$ $ $ Avg exchange rate for the period (fc/$) Net profits of individual subsidiary $ 2,912.00 $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
