Question

Ch10-18 i Saved Help Save & Exit Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.3566 S$/US$. You have just placed an order for 30,000 motherboards at a cost to you of 185.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $150 each. a. Calculate your profit if the exchange rate stays the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Calculate your profit if the exchange rate rises by 10 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate your profit if the exchange rate falls by 10 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Profit b. Profit c. Profit d. Break-even rate e. Percentage decline S$

Answer 1

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- 2x WY - wx wr ke - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Σ AutoSum : A Calibri -11AA = = = Dr Wrap Text General Ea Copy Fill Paste * SF BI U DA Merge Merge & Center Center $ - % % 4:0 .00 8. Conditional Format Cell Insert Delete Format Sort & Find & Format Painter Formatting as Table Styles 2 Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing WX280 fx WM WN WOWPWQ WRWSWT WU WV WW WX 280 281 COST OF MOTHERBOARD = 185.50/1.3566 = 136.7389 PROFIT = 30000*(150 - 136.7389) = 397832.82 (NO INTERMEDIATE ROUNDING IS DONE) 283 EXCHANGE RATE GOES UP BY 10% 285 NEW EXCHANGE RATE = 1.1*1.3566 = 1.4923 286 COST OF MOTHERBOARD = 185.50/1.4923 = 124.3081 287 PROFIT = 30000*(150 - 124.3081) = 770757.11 (NO INTERMEDIATE ROUNDING IS DONE) 288 289 EXCHANGE RATE GOES DOWN BY 10% NEW EXCHANGE RATE = 0.9*1.3566 = 1.2209 291 COST OF MOTHERBOARD = 185.50/1.2209 = 151.9321 292 PROFIT = 30000*(150 - 151.9321) = -57963.54 (NO INTERMEDIATE ROUNDING IS DONE) 282 284 290 293 294 295 296 BREAKEVEN EXCHANGE RATE = 185.5/SPOT RATE = 150 SPOT RATE = 1.2367 297 298 HON Rea % RISE/FALL IN TERMS OF SINGAPORE DOLLARS FALL KE CAPM UTILITY, SHARPE, beta convexity DGM betaport future INDEX INTL CAP BUD ferences: GF466 (1.2367-1.3566)/1.3566 = -8.84 8.84% SANDRINE LEASING PV, FV, ANNUITY DIR right clean RI O YIELD bond portfolio WACC DOI 130% - 9 * * *8 ENG O D R 01-12-2019