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kirill115 [55]
3 years ago
6

Chicago Company has a subsidiary in Germany where it generates large profits. The subsidiary remits most of its earnings to the

parent each year. If Chicago Company wants to reduce its exposure to exchange rate risk, it might consider _______________ to finance the German subsidiary's operations.
Business
2 answers:
matrenka [14]3 years ago
6 0

Answer:instructing the German subsidiary to borrow euros from a bank in Germany

Explanation:A company may organize subsidiaries to keep its brand identities separate. This allows each brand to maintain its established goodwill with customers and vendor relationships. Subsidiaries can also help you position part of your business as an alternative to the parent company at a different price point.

The Chicago Company will instruct the German subsidiary to lend Euro from bank in Germany.

Gelneren [198K]3 years ago
5 0

Answer:

C) instructing the German subsidiary to borrow euros from a bank in Germany

Explanation:

In order for the Chicago company to reduce the exchange rate risk of the German subsidiaries, It might consider the German subsidiary borrowing euros from a bank in Germany to finance the operations of the German subsidiary.

Exchange rate risk is the possibility that the value of an investment will change when the currency is exchanged. It arises as a result of different currencies used by different countries.

Foreign investments face the problem of exchange rate risk because the operate in different countries using different currencies.

Difference in exchange rate could lead to loss of capital or Profits in a foreign investments

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Decision : It would be better to Replace Old Machine

Explanation:

Check the file attached for proper arrangement and explanation of the solution. Thank you.

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6 0
2 years ago
Wiggins Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock
Ugo [173]

Answer:

Book value par common share will be $19.6

Explanation:

We have given number of preferred stock = 1000

Value of preferred stock = $10 par preferred stock

So preferred Stock = 1000 x $10 = $10000

Total Stockholder's equity = $500000

Thus Common stock value = $500000 - $10000 = $490000

Total number of common stock = 25000 shares

So the book value per common share is = \frac{490000}{25000}=19.6

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3 years ago
The largest owner/operator of radio stations in the United States is ____________________. In 2006, this company became a privat
valentina_108 [34]

The largest owner/operator of radio stations in the United States is iHeartMedia. In 2006, this company became a privately owned company.

<h3><u>What are radio stations?</u></h3>
  • Radio broadcasting is the process of sending audio over radio waves to radio listeners in a public setting, sometimes along with accompanying metadata.
  • Unlike satellite radio, which uses a satellite in Earth's orbit, terrestrial radio broadcasting uses a land-based radio station to transmit radio waves. The listener needs a broadcast radio receiver to hear the material.
  • A radio network with which stations frequently have affiliations provide content in a standard radio format, whether through broadcast syndication, simulcasting, or both.
  • Various types of modulation are used by radio stations during transmission: Older analog audio standards like AM and FM are used by radio stations to transmit audio, whereas modern digital radio stations use DAB and other digital audio standards.

Through its division iHeartMedia and subsidiary iHeartMedia and Entertainment, Inc., iHeartMedia, Inc. focuses on radio broadcasting, podcasting, digital, and live events. With more than 850 full-power AM and FM radio stations nationwide, it is the largest radio station owner in the nation.

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natka813 [3]
The economy is consider to be at full employment. 
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2 years ago
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As individuals we come across a lot of information daily, but our brains can only process such information one at a time, if we attempt to process more data it may lead to the overstressing of the brain capacity which may eventually cause information overload.

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