d. Urica Inc. is a US based MNC that purchased its raw materials from Belgium. Usca Inc. also generates a portion of its

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D Urica Inc Is A Us Based Mnc That Purchased Its Raw Materials From Belgium Usca Inc Also Generates A Portion Of Its 1 (26.67 KiB) Viewed 34 times

d. Urica Inc. is a US based MNC that purchased its raw materials from Belgium. Usca Inc. also generates a portion of its sales from exporting to Belgium Utica Inc. expects the possible exchange rates for Belgium Euro (€) over the period of concer: (1)€ = 30.50(2) € = 30.55 and (3) € = 50.60. Assume the Belgium earnings will be remitted to the US parent at the end of the period. Ignore possible tax effects. Referring to the table below for Utica Inc. Assess the degree of exposure and how the company is affected by the possible scenarios Forecasted sales and Expenses (in Millions of US dollars and Euro) U.S Business Belgium Business Sales 5800 €800 Cost of materials SOD 100 Operating expenses 300 Interest expense Cash flow S100 € 700 0 100 0 (14 marks)