Translate the French and Australian information into dollars to make the divisions comparable. Find the after-tax operating income for each division and compare the profits Transcribed Image Text: Multinational firms,

Translate the French and Australian information into dollars to make the divisions comparable. Find the after-tax operating income for each division and compare the profits Transcribed Image Text: Multinational firms, differing risk, comparison of profit, ROI, and RI. Newmann, Inc. has divisions
in the United States, France, and Australia. The U.S. division is the oldest and most established of the three
and has a cost of capital of 6%. The French division was started four years ago when the exchange rate for
the Euro was 1 Euro = $1.34 USD. The French division has a cost of capital of 8%. The division in Australia
was started this year, when the exchange rate was 1 Australian Dollar (AUD) = $0.87 USD. Its cost of capi-
tal is 11%. Average exchange rates for the current year are 1 euro = $1.07 and 1 AUD = $0.74 USD. Other
information for the three divisions includes:
United States
France
Australia
Long-term assets
Operating revenues
Operating expenses
$22,048,000
$31,826,170
$26,738,330
8,798,851 AUD
4,509,628 AUD
11,422,761 euros
7,023,860 euros
4,980,290 euros
8,216,892 AUD
Income-tax rate
35%
30%
20%

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