Under both the temporal method and the current rate method, what exchange rate should be used to translate a foreign subsidiary’s dividends into parent company currency?
A. current rate
B. historical rate
C. average rate
D. Any of the above methods may be used under both the temporal and current method.
Answer:B
Under both the temporal method and the current rate method, what exchange rate should be used to translate a foreign subsidiary’s dividends into parent company currency?
A. current rate B. historical rate C. average rate D. Any of the above methods may be used under both the temporal and current method.