Question

Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue of 16%. Suppose that during the year, the value of the Euro increased in terms U.S. dollars. The subsidiary's revenue growth rate expressed in U.S. dollars will be:

Answer 1

The appropriate answer is "Greater than 16%".

Step-by-step explanation:

• Throughout this situation, the country's currency of companies has shown a 16 percent raise, which means that the sales of the subsidiaries would increase more than 16 percent whenever represented among Us dollars.
• As several currencies are increasing inside this valuation of the national currency, the transformation rate is greater than 16% as that the incidence increases.