Products

Holooly Rewards

We are determined to provide the latest solutions related to all subjects FREE of charge!

Please sign up to our reward program to support us in return and take advantage of the incredible listed offers.

Enjoy Limited offers, deals & Discounts by signing up to Holooly Rewards Program

Holooly Ads. Manager

Advertise your business, and reach millions of students around the world.

Holooly Tables

All the data tables that you may search for.

Holooly Arabia

For Arabic Users, find a teacher/tutor in your City or country in the Middle East.

Holooly Sources

Find the Source, Textbook, Solution Manual that you are looking for in 1 click.

Holooly Help Desk

Need Help? We got you covered.

Chapter 21

Q. 21.FSE.8

a. Portland Co. is a U.S. firm with no foreign subsidiaries. In addition to much business in the United States, its exporting business results in annual cash inflows of 20 million euros. Briefly explain how Portland Co. is subject to translation exposure (if at all).
b. Topeka Co. is a U.S. firm with no exports or imports. It has a subsidiary in Germany that typically generates earnings of 10 million euros each year, and none of the earnings are remitted to the United States. Briefly explain how Topeka Co. is subject to translation exposure (if at all).

Step-by-Step

Verified Solution

a. Portland Co. is not subject to translation exposure since it has no foreign subsidiaries.
b. Topeka’s consolidated earnings will increase if the euro appreciates against the dollar over the reporting period.