Chapter 10

The estimated dollar value of Kanab’s translated earnings is C$20,000,000 x .60 = $12,000,000. The estimated dollar value of Zion’s translated earnings is 1,000,000 pesos x .10 = $100,000. Since both companies are the same size, Kanab Co. has a much higher proportion of its business that is subject to translation exposure. ................
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