LBO in Foreign Currency
If I have all three statements in local currency, when calculating returns in USD, which forecast FX do you use?
Do you use estimated broker research spot rates for each year or the forward curve?
I've been thinking about this and can't make up my mind.
Thanks!
Thanks, FairValue! You wouldn't use the forward curve (that takes into account interest rate differential)? Some people in my firm think that is a correct approach, but I'm not 100% it is right and what is the rationale to use that
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