Nexus Tech Nexus Tech's Earnings and the Fall of the Dollar. Nexus Tech 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. Nexus Tech is traded on the NASDAQ. Nexus Tech currently has 655,000 shares outstanding. The basic operating characteristics of the various business units is as follows: must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech'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 Nexus Tech's consolidated EPS if all foreign currencies were to appreciate 18% against the U.S. dollar? c. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to depreciate 18% against the U.S. dollar? Avg exchange rate for the period (fc/$) Net profits of individual subsidiary 3,515.50 $ The consolidated earnings per share is $ 16.53 (Round to the nearest c b. What would be the impact on Nexus Tech's consolidated EPS if all forei Calculate the business performance per country below: (Round to two de Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary Avg exchange rate for the period (fc/$) Net profits of individual subsidiary U.S. Parent Company Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,450 21% Brazilian Subsidiary (reais, R$) R$6,300 25% R$1.7252 $1.00 German Subsidiary (euro, €) €4,460 40% €0.6156 = $1.00 Print Done example Get more help Chinese Subsidiary (yuan, \) ¥2,540 30% ¥7.6895 = $1.00 Clear all Check answer
Nexus Tech Nexus Tech's Earnings and the Fall of the Dollar. Nexus Tech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Nexus Tech is traded on the NASDAQ. Nexus Tech currently has 655,000 shares outstanding. The basic operating characteristics of the various business units is as follows: must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? The dollar has experienced significant swings in value against most of the world's currencies in recent years. b. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to appreciate 18% against the U.S. dollar? c. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to depreciate 18% against the U.S. dollar? Avg exchange rate for the period (fc/$) Net profits of individual subsidiary 3,515.50 $ The consolidated earnings per share is $ 16.53 (Round to the nearest c b. What would be the impact on Nexus Tech's consolidated EPS if all forei Calculate the business performance per country below: (Round to two de Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary Avg exchange rate for the period (fc/$) Net profits of individual subsidiary U.S. Parent Company Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,450 21% Brazilian Subsidiary (reais, R$) R$6,300 25% R$1.7252 $1.00 German Subsidiary (euro, €) €4,460 40% €0.6156 = $1.00 Print Done example Get more help Chinese Subsidiary (yuan, \) ¥2,540 30% ¥7.6895 = $1.00 Clear all Check answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Nexus Tech
Nexus Tech's Earnings and the Fall of the Dollar. Nexus Tech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations
in the United States. Nexus Tech is traded on the NASDAQ. Nexus Tech currently has 655,000 shares outstanding. The basic operating characteristics of the various business units is as follows:
must pay corporate income tax in each country in which it currently has operations.
a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars?
The dollar has experienced significant swings in value against most of the world's currencies in recent years.
b. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to appreciate 18% against the U.S. dollar?
c. What would be the impact on Nexus Tech's consolidated EPS if all foreign currencies were to depreciate 18% against the U.S. dollar?
Avg exchange rate for the period (fc/$)
Net profits of individual subsidiary
3,515.50
$
The consolidated earnings per share is $ 16.53 (Round to the nearest c
b. What would be the impact on Nexus Tech's consolidated EPS if all forei
Calculate the business performance per country below: (Round to two de
Business Performance (000s)
Earnings before taxes (local currency)
Less corporate income taxes
Net profits of individual subsidiary
Avg exchange rate for the period (fc/$)
Net profits of individual subsidiary
U.S. Parent
Company
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Business Performance (000s)
Earnings before taxes (EBT)
Corporate income tax rate
Average exchange rate for the period
U.S. Parent
(US$)
$4,450
21%
Brazilian
Subsidiary
(reais, R$)
R$6,300
25%
R$1.7252 $1.00
German
Subsidiary
(euro, €)
€4,460
40%
€0.6156 = $1.00
Print
Done
example
Get more help
Chinese
Subsidiary
(yuan, \)
¥2,540
30%
¥7.6895 = $1.00
Clear all
Check answer
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