Choose Apple or Dell and whichever company has the mostinformation choose that one. DescriptionChoose a multinational corporation. Look for their most recent financials which you can locate on their...

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Choose Apple or Dell and whichever company has the mostinformation choose that one.

DescriptionChoose a multinational corporation. Look for their most recent financials which you can locate on their website or any other resource such as Edgar or www.annualreportservice.com. You will need to respond to the following items:

a) Do the financials address foreign exchange risk management? (Tip: this is usually discussed in the Notes or Management’s Discussion and Analysis). Your answer should say something like this: the company’s most recent financials for the fiscal year that ended ________ address foreign exchange risk management in note _______. b) Review the comments on the financial statements that describe your company’s transaction, economic and translation exposure(s). Summarize your company’s exposure(s) based on its financial statements.

You will need to provide support for your responses e.g. print and attach the associated pages from the statements and highlight the sections used. No more than a page and a half.

Answered Same DayDec 20, 2021

Solution

David answered on Dec 20 2021
3 Votes
Company selected for the purpose of study: Dell.
The Company’s most recent financials for the year ended September 24, 2011, addresses
foreign exchange risk management in item 7A – “quantitative and qualitative disclosures
about market risk” under the management’s discussion and analysis section.
According to the Company, it is a net receiver of various other cu
encies apart from the US
dollar. Any fluctuations in the cu
ency (particularly strengthening of the US dollar) could
adversely impact the sales and profit of the company. In order to shield and protect itself
from the associated foreign exchange risks, the Company enters into forward and option
contracts with the financial institutions. In general, the...
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