Answered: a) What is the calue of holdings ,…

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a) What is the calue of holdings , based on U.S. dollars, at the year end?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter22: International Financial Management

Section: Chapter Questions

Problem 4P

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

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Postal Express has outlets throught the world. It also keeps funds for transactions purposes in many foreign countries. Assume that in 2010 it help 200,000 reals in Brazil worth 130,000 dollars. It drew 10 percent interest , but the Brazilian real declined 20 percent aganist the dollar.

a) What is the calue of holdings , based on U.S. dollars, at the year end?

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