Problem 1-13 (algorithmic) Question Help 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 658,000 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) German Subsidiary (€) Chinese Brazilian Subsidiary (V) ¥2,540 Subsidiary (R$) R$6,190 U.S. Parent Business Performance (000s) (USS) €4,450 Earnings before taxes (EBT) $4,470 Corporate income tax rate 35% 25% 40% 30% R$1.7157/S Average exchange rate for the period €0.6185/S ¥7.7055/S Americo must pay corporate income tax in each country in which it currently has operations a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? The dollar has experienced significant swings in value against most of the world's currencies in recent years. b. What would be the impact on Americo's consolidated EPS if all foreign currencies were to appreciate 22% against the U.S. dollar? c. What would be the impact on Americo's consolidated EPS if all foreign currencies were to depreciate 22% 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 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/S) Net profits of individual subsidiary Enter any number in the edit fields and then click Check Answer. parts 16 remaining Clear All

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