Utica Inc. is a U.S based MNC that purchased its raw materials from Belgium. Utica Inc....

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Utica Inc. is a U.S based MNC that purchased its raw materials from Belgium. Utica Inc. also generates a portion of its sales from exporting to Belgium. Utica Inc. expects the possible exchange rates for Belgium Euro (€) over the period of concern: (1) € = $0.50, (2) € = $0.55 and (3) € = $0.60. Assume the Belgium earnings will be remitted to the U.S parent at the end of the period. Ignore possible tax effects. Referring to the table below for Utica Inc. Assess the degree of exposure and how the company is affected by the possible scenarios. Forecasted sales and Expenses (in Millions of U.S dollars and Euro) U.S Business Belgium Business Sales Cost of materials Operating expenses Interest expense Cash flow $800 500 300 100 -$100 €800 100 0 0 €700 Utica Inc. is a U.S based MNC that purchased its raw materials from Belgium. Utica Inc. also generates a portion of its sales from exporting to Belgium. Utica Inc. expects the possible exchange rates for Belgium Euro (€) over the period of concern: (1) € = $0.50, (2) € = $0.55 and (3) € = $0.60. Assume the Belgium earnings will be remitted to the U.S parent at the end of the period. Ignore possible tax effects. Referring to the table below for Utica Inc. Assess the degree of exposure and how the company is affected by the possible scenarios. Forecasted sales and Expenses (in Millions of U.S dollars and Euro) U.S Business Belgium Business Sales Cost of materials Operating expenses Interest expense Cash flow $800 500 300 100 -$100 €800 100 0 0 €700