The latimore company invested $8.5 million in a new plant in italy when the exchange rate was 1.1500 euros to the dollar. at the end of the year, the rate was 1.2000 euros to the dollar. (indirect quotes.)

a. did latimore make or lose money on the exchange rate movement? if so, how much?

b. what kind of exchange rate gain or loss was it?

c. what was the tax impact if latimore’s marginal tax rate is 40%?

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position