What are the pros and the cons of the international sales, Ask an Expert

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1. What are the pros and the cons of the international sales plan? What additional risks will the company face?

2. What happens to the company's profits if the dollar strengthens? What if the dollar weakens?

3. Ignoring taxes, what are East Coast Yachts projected gains or losses from this proposed arrangement at the current exchange rate of $0.55/€? What happens to profits if the exchange rate changes to $0.75/€? At what exchange rate will the company break even?

4. How could the company hedge its exchange rate risk? What are the implications for this approach?

5. Taking all factors into account, should the company pursue international sales further? Why or why not?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M957148

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