PIXONIX INC. - Currency Exposure Answers Question #1 The company Pixonix Inc is based in Canada and its revenues are based in Canadian Dollars, however Pixonix dealt with US firms, so a majority of Pixonix's expenses were paid in US Dollars. Of key interest is the annual payment of US$7.5million at the end of January each year as well as the payments made at the end of June each year (which required the CAD to be converted to USD). Recently the Canadian Dollar has been appreciating and positively
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Pixonix Inc. ± Addressing currency Exposure |BPP/ FIN 422 International Economics and Finance ||JatinBelaniSiddharthLadsariyaMansiShahHimaniShethHarmeetSinghJayantVerma |||Executive SummaryPixonix was a graphic design company that operated in Toronto, Canada. Pixonix licensedproprietary tools and software through a US Company at an annual cost of USD 7.5 mn. SincePixonix was based in Canada, its revenues were based in Canadian dollars and expenses had tobe paid in USD. Pixonix was required to make
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Pixonix Inc. ± Addressing currency Exposure Executive Summary Introduction Identification of Problems Pixonix is a Canadian company that makes major purchases in the United States. The American and Canadian dollars are always changing, and the company is faced with the difficult decision of how they will react to the constant change in currency exchange rates. Pixonix is very susceptible to failure and losses as a result of this fluctuating
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w rP os t S 908N13 PIXONIX INC. - ADDRESSING CURRENCY EXPOSURE op yo Karim A. Moolani wrote this case under the supervision of Professor Colette Southam solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction
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that you can obtain discounted student pricing for the cases: Group Ariel S.S.: Parity Conditions and Cross-Border Valuation (Note that there is no need to purchase the audio version of this case.) Pixonix Inc. Addressing Currency Exposure Recommended: 1. Subscription to the Wall Street Journal. Several class sessions will utilize information from the Wall Street Journal. See syllabus for the dates. 2. Subscription to or regular reading of the Financial
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