Economic exposure
How economic exposure can be defined in order to exchange the risk?
Expert
Economic exposure is defined as the possibility that the firm’s cash flows and therefore its market value can be affected through the unexpected exchange rate changes.
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A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities
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