Sometimes I do it that way too and thats what I was talking about. I don’t know they said change in the value of the USD so I calculated that change. It very well could be what you did. It’s worded oddly at least to me.
bannisja Wrote: ------------------------------------------------------- > dinesh- stocks can’t be HTM- just debt > securities. > stick that in your brain now. correct … was doing the H model when Nib caught me off guard and thanks for correcting. … So it’s A and A.
and last but not least my question’s answer (dinesh, we fall for the same traps) Answer is D not A. Note they asked for the impact of the $USD changing… tricky. The increase in sales due to the appreciating EUR is measured as 7.5% [= (1.1417 / 1.0620) − 1]. Sales for the subsidiary rose 10% [= (1,100,000 / 1,000,000) – 1] in the local currency (EUR). After translation the parent firm will report sales of USD 1,062,000 (= EUR 1,000,000 × 1.0620) for 2002 and USD 1,255,870 (= EUR 1,100,000 × 1.1417) for 2003. Growth measured from the parent’s perspective indicates sales rose 18.25% [= (1,255,870 / 1,062,000) − 1]. The 18.25% increase can also be calculated as the product of one plus the growth rate in sales measured in the local currency and one plus the rate of appreciation in the foreign currency, minus one, or (1.10 × 1.075) − 1 = 0.1825. The increase in the EUR results in a flow effect.
A for both is correct and banni explained it.
agree with A and a on nibilita’s
sorry guys i just got home so I am just one step behind managed to catch up now