Question: NexusTech's EPS Sensitivity to Exchange Rates ( A ) . NexusTech is a U . S . - based multinational manufacturing firm with wholly -

NexusTech's EPS Sensitivity to Exchange Rates (A). NexusTech 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. NexusTech is traded on the NASDAQ. NexusTech currently has 643 comma 000 shares outstanding. The basic operating characteristics of the various business units is as follows: LOADING.... NexusTech must pay corporate income tax in each country in which it currently has operations.
a. After deducting taxes in each country, what are NexusTech's consolidated earnings and consolidated earnings per share in U.S. dollars?
b. Assume a major political crisis wracks Brazil, first affecting the value of the Brazilian reais and, subsequently, inducing an economic recession within the country. What would be the impact on NexusTech's consolidated EPS if the Brazilian reais were to fall in value to R$ 2.9096 divided by $, with all other earnings and exchange rates remaining the same?
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Part 1
a. After deducting taxes in each country, what are NexusTech's consolidated earnings and consolidated earnings per share in U.S. dollars?
Calculate the business performance per country below:(Round to two decimal places. Round exchange rates to four decimal places.)
U.S. Parent
Business Performance (000s)
Company
Earnings before taxes (local currency)
$
Less corporate income taxes
$
Net profits of individual subsidiary
$
Avg exchange rate for the period (fc/$)
Net profits of individual subsidiary
$

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