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Home Q & A Board Other Fields Homework Help Business Management
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stranahan stranahan
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7 years ago
Assume you manage a firm that faces transaction exposure. Your company manufactures and sells tricycles around the world. You have just completed a large sale of tricycles to a chain of stores in Sweden and received a promised payment of 375 krona per tricycle. You have already sold 3,000 tricycles and are now awaiting payment. The exchange rate today is 7.5 krona per dollar. Over the next ninety days, the indirect exchange rate unexpectedly moves from 7.5 to 7.7. What is the fall in domestic revenue due to this unexpected move in the exchange rate?
A) $389
B) $1289
C) $3896
D) $2896
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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UnluckyGirlXOXUnluckyGirlXOX
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you for  the help. I had a few questions on a few of them and this really confirmed my answers.
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