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Business, 13.04.2021 03:10 kellypechacekoyc1b3

Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Franco Co is deciding whether to deposit cash at a bank in the eurozone. The possible appreciation, or depreciation, of the euro affects the number of dollars the MNC ultimately receives. Franco Co uses a forecasted exchange rate of the euro to help them make a decision. This is an example of using exchange rate forecasting to assist with"financing in foreign currency; short-term investment; capital budgeting; short-term investment; hedging; earning assessment" decisions, with the goal of improving the value of the MNC via influencing the"the cost of capital; dollar value of foreign cash flows"

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