Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue

Question

3 years ago

7

Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue

of 16%. Suppose that during the year, the value of the Euro increased in terms U.S. dollars. The subsidiary's revenue growth rate expressed in U.S. dollars will be:

Business

1 answer:

Maksim231197 [3] · Answer 1 · 2022-08-26T05:38:59+03:00

Answer:

The appropriate answer is "Greater than 16%".

Explanation:

Throughout this situation, the country's currency of companies has shown a 16 percent raise, which means that the sales of the subsidiaries would increase more than 16 percent whenever represented among Us dollars.
As several currencies are increasing inside this valuation of the national currency, the transformation rate is greater than 16% as that the incidence increases.