Blundell Biotech. Blundell Biotech is a​ U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The​ company's profits by​ subsidiary, in local currency​ (in millions), are shown in the table
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for 2013 and 2014.
a. What was Blundell​ Biotech's consolidated profits in U.S. dollars in 2013 and​ 2014?
b. If the same exchange rates were used for both​ years, what was the change in corporate earnings on a​ "constant currency"​basis?
c. Using the results of the constant currency analysis in part
​(b​)​,
is it possible to separate​ Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated​ basis?
Blundell Biotech. Blundell Biotech is a​ U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The​ company's profits by​ subsidiary, in local currency​ (in millions), are shown in the table
LOADING...
for 2013 and 2014.
a. What was Blundell​ Biotech's consolidated profits in U.S. dollars in 2013 and​ 2014?
b. If the same exchange rates were used for both​ years, what was the change in corporate earnings on a​ "constant currency"​basis?
c. Using the results of the constant currency analysis in part
​(b​)​,
is it possible to separate​ Blundell's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated​ basis?
(a) Japanese
Subsidiary British
Subsidiary European
Subsidiary Chinese
Subsidiary Russian
Subsidiary United States
Subsidiary Net Income JPY GBP EUR CNY RUB USD 2013 1497 90.36 212.65 176.63 118.27 368.54 2014 1463 107.23 216.62 203.45 113.13 384.03 (b) Exchange Rate JPY = 1 USD USD = 1 GBP USD = 1 EUR CNY = 1 USD RUB = 1 USD USD 2013 97.54 1.4751 1.299 6.163 31.87 1 2014 105.84 1.6979 1.3878 6.2459 38.52 1