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The extent to which the value of the firm would be affected by expected changes in...

The extent to which the value of the firm would be affected by expected changes in the exchange rate is:

transaction exposure.

translation exposure.

economic exposure.

none of the options

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Homework Answers

Answer #1

Answer is NONE OF THESE

other options to be failed because.

Economic exposure is the Unexpected changes that occur in the currency which effects the firm value

Transaction exposure refers to the short term, and the cash flows are effected in the future due to the changes in dinestic currencies.

Translation exposure or accounting exposure which means that the financial statements of foreign child companies have to mentioned in parents records. It is purely different from the asked question.

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