Question #10 - Reading 10 Multinational Operations

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 6

Status: Correct

Correct Answer: A

Shared Context

- The first step in Jameson's analysis is to compute Kasamatsu's impact on WB's net income. What is Kasamatsu's impact on WB's net income (in thousands dollars)? A) $821. B) $793. C) $850.

Question

Jameson now computes the adjustment to WB's financial data due to Kasamatsu's payment of dividends. What is the U.S. dollar amount of this adjustment (in thousands)?

Answer Choices:

A. $400

B. $414

C. $446

Explanation

WB receives a cash dividend from their subsidiary. This dividend must be translated at the prevailing exchange rate on the date the dividend is declared (145/$). $58,000 / 145 = 400. Both remaining answers use incorrect exchange rates.

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