ESSENTIALS CORPORATE FINANCE + CNCT A.
ESSENTIALS CORPORATE FINANCE + CNCT A.
9th Edition
ISBN: 9781259968723
Author: Ross
Publisher: MCG CUSTOM
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Chapter 18, Problem 18.6C
Summary Introduction

To determine: The change in the translation exposure is a good example of the political risk.

Introduction:

Translation exposure is a risk associated with the changes in exchange rates. Here, when Country U-based companies operate in foreign countries, their assets, liabilities, equities, or net income values change due to fluctuations in exchange rates.

As a result, Country U’s companies operating in foreign countries must convert their financial statements in dollars by using current exchange rates. These changes in exchange rates can alter the financial statement mainly due to the translation exposure.

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Chapter 18 Solutions

ESSENTIALS CORPORATE FINANCE + CNCT A.

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