Homework Answers
A) Net Exposure = Exposed Assets – Exposed Liabilities
Net Exposure = 500 billion yen – 800 billion yen
Net Exposure = – 300 billion yen
Net Exposure is liability of 300 billion yen
B) Converting the currency,
1$ = 150 yen which is equal to 1Yen = 1/150$ = 0.00667 $
Yen appreciated,
1$ =100 yen which is equal to 1Yen =1/100 $ = 0.01000 $
Amount of translation loss = (0.01000-0.00667) X 300 billion yen
Amount of translation loss = $ 0.99 billion yen or $1.00 billion yen (rounded off)
C) Converting the currency,
1$ = 150 yen which is equal to 1Yen = 1/150$ = 0.00667 $
Yen appreciated,
1$ =200 yen which is equal to 1Yen =1/200 $ = 0.00500 $
Amount of translation Profit = (0.00667-.00500) X 300 billion yen
Amount of translation Profit = $ 0.50 billion yen
Add Answer to:
a money market nedge? Substantiate your answer with 2. A US company has a single, wholly-owned...
I he tollowing are the toreign currency positions of an H, expressed in the foreign currency Currency Swiss fran...
I he tollowing are the toreign currency positions of an H, expressed in the foreign currency Currency Swiss franc (Sf) British pound (6) Japanese yen () Assets Liabilities 51,000 EX Bought FX Sold Sf 127,500 38,168 7,869, 885 Sf Sf 10,200 11, 450 Y1, 259, 181 15,300 15,267 Y9, 233, 998 16,794 Y3,147,954 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the...
E7.11 Translated and Remeasured Trial BalancesThe inode Company established a wholly-owned on January 1, 2019, when...
E7.11 Translated and Remeasured Trial BalancesThe inode Company established a wholly-owned on January 1, 2019, when the exchange rate was $0.30/riyal (SAR). Of Thode's initial SAR200.000.000 investment, SAR100,000,000 was used to acquire plant assets (ten- vear life) and SAR50.000.000 was used to acquire inventory. The remaining amount was initially held as cash by the subsidiary. During 2019. the subsidiary reported net income of SAR20.000.000. Inventory purchases of SAR15.000.000 were made evenly during the year. It paid dividends of SAR10.000.000 on...
Correct me if I am wrong but I believe: 1. T 2. D 3. Sweden?? (or Ireland???) 4. C?? True or False _ 1. From a U.S. buy...
Correct me if I am wrong but I believe:
1. T
2. D
3. Sweden?? (or Ireland???)
4. C??
True or False _ 1. From a U.S. buyer's and seller's perspective, appreciation of the foreign currency will generate foreign exchange gains on receivables created from its export sale of goods to foreign buyers and foreign exchange losses on payables created from its import purchase of goods from foreign sellers. Multiple Choice 2. U.S. based General Motors has a Japanese yen...
please answer all questions listed and show work Problems (5 points each): please calculate the loss/gain...
please answer all questions listed and show work
Problems (5 points each): please calculate the loss/gain resulting from the change in the exchange rate 1) Calculate the impact to a European subsidiary of a U.S. firm that has net exposed assets of €750,000, and the euro drops in value fr $1.30/euro to $1.20/€ 3) What is the impact to a British subsidiary of a European firm has net exposed assets of £125,000, and the pound increases in value from €1.40/£to...
M Company has the following export and import transactions during 20X5: On March 1, M sold...
M Company has the following export and import transactions during 20X5: On March 1, M sold goods to a Canadian Company for C$30,000, receivable on May 31. The spot rates for the C$ were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 31. On July 1, M signed a contract to purchase equipment from a Japanese Company for ¥500,000. The equipment was manufactured in Japan during August and was delivered to M on August 31 with...
9. Refer to the following fact pattern: Star Corporation had a realized foreign exchange loss of $11,000 for the...
9. Refer to the following fact pattern: Star Corporation had a realized foreign exchange loss of $11,000 for the year (on the collection of its accounts receivable from a foreign customer). Star had a $7,000 credit resulting from the translation to dollars of the accounts of its wholly-owned foreign subsidiary for the year. Star had an account payable to an unrelated foreign supplier to be paid in the supplier's local currency. The dollar equivalent of the payable was $60,000 on...
Volkswagen's Hedging Strategy 1. Why did Volkswagen suffer a 95% drop in its 4th quarter, 2003 pr...
Volkswagen's Hedging Strategy
1. Why did Volkswagen suffer a 95% drop in its 4th
quarter, 2003 profits?
2. Do you think the Volkswagen’s decision to hedge only 30% of
its anticipated U.S. sales was a good? Why or why not?
3. Do you think the Volkswagen’s decision to revert back to
hedging 70% of its foreign currency exposure was a good decision?
Why or why not?
Embraer and the Wild Ride of the Brazilian
Real
4. Is a decline in...
Maple Company had the following export and import transactions during 20X5: On March 1, Maple sold...
Maple Company had the following export and import transactions during 20X5: On March 1, Maple sold goods to a Canadian company for C$49,000, receivable on May 30. The spot rates for Canadian dollars were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 30. On July 1, Maple signed a contract to purchase equipment from a Japanese company for ¥440,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with...
Case assignments must be completed with a written 2-page study on the assigned case questions in...
Case assignments must be completed with a written 2-page study on the assigned case questions in the textbook. The format requested for these assignments is based on elaborating and including two basic parts in the essay: 1) in a bullet presentation style (one phrase each bullet), list a summary of the key issues, situations, problems, opportunities and threats you may identify as relevant; 2) answer all the questions listed in each case in two or three sound paragraphs. Use the...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
I he tollowing are the toreign currency positions of an H, expressed in the foreign currency Currency Swiss franc (Sf) British pound (6) Japanese yen () Assets Liabilities 51,000 EX Bought FX Sold Sf 127,500 38,168 7,869, 885 Sf Sf 10,200 11, 450 Y1, 259, 181 15,300 15,267 Y9, 233, 998 16,794 Y3,147,954 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the...
E7.11 Translated and Remeasured Trial BalancesThe inode Company established a wholly-owned on January 1, 2019, when the exchange rate was $0.30/riyal (SAR). Of Thode's initial SAR200.000.000 investment, SAR100,000,000 was used to acquire plant assets (ten- vear life) and SAR50.000.000 was used to acquire inventory. The remaining amount was initially held as cash by the subsidiary. During 2019. the subsidiary reported net income of SAR20.000.000. Inventory purchases of SAR15.000.000 were made evenly during the year. It paid dividends of SAR10.000.000 on...
Correct me if I am wrong but I believe:
1. T
2. D
3. Sweden?? (or Ireland???)
4. C??
True or False _ 1. From a U.S. buyer's and seller's perspective, appreciation of the foreign currency will generate foreign exchange gains on receivables created from its export sale of goods to foreign buyers and foreign exchange losses on payables created from its import purchase of goods from foreign sellers. Multiple Choice 2. U.S. based General Motors has a Japanese yen...
please answer all questions listed and show work
Problems (5 points each): please calculate the loss/gain resulting from the change in the exchange rate 1) Calculate the impact to a European subsidiary of a U.S. firm that has net exposed assets of €750,000, and the euro drops in value fr $1.30/euro to $1.20/€ 3) What is the impact to a British subsidiary of a European firm has net exposed assets of £125,000, and the pound increases in value from €1.40/£to...
9. Refer to the following fact pattern: Star Corporation had a realized foreign exchange loss of $11,000 for the year (on the collection of its accounts receivable from a foreign customer). Star had a $7,000 credit resulting from the translation to dollars of the accounts of its wholly-owned foreign subsidiary for the year. Star had an account payable to an unrelated foreign supplier to be paid in the supplier's local currency. The dollar equivalent of the payable was $60,000 on...
Volkswagen's Hedging Strategy
1. Why did Volkswagen suffer a 95% drop in its 4th
quarter, 2003 profits?
2. Do you think the Volkswagen’s decision to hedge only 30% of
its anticipated U.S. sales was a good? Why or why not?
3. Do you think the Volkswagen’s decision to revert back to
hedging 70% of its foreign currency exposure was a good decision?
Why or why not?
Embraer and the Wild Ride of the Brazilian
Real
4. Is a decline in...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Most questions answered within 3 hours.
-
According to a recent national Gallup Poll of U.S. smartphone
user, 35% upgrade their cell phone...
asked 1 minute from now -
Jessica is single and has taxable income of $305,000 of which
$130,000 is attributable to her...
asked 2 minutes ago -
Can someone help me fill in the first part of this c++ code:
I need it...
asked 4 minutes ago -
A reaction vessel at 27 ∘C contains a mixture of SO2(P=3.10 atm
) and O2(P=1.00 atm...
asked 24 minutes ago -
A scientist randomly mutates the DNA of a bacterium. She then
sequences the bacterium’s daughter cells,...
asked 35 minutes ago -
2. Content theories attempt to explain work behaviors based on
__________.
a. the relationship between values...
asked 28 minutes ago -
Discuss the impact of technology on Medieval society and culture
and the impact of society and...
asked 24 minutes ago -
Assignment 3: Introduction & Environmental Analysis,
SWOT, Marketing Objectives (Goals) Marketing 4100
Directions
Total Point Value:...
asked 16 minutes ago -
Forecasts and actual sales of MP3 players at Just Say
Music are as follows:
Month
Forecast...
asked 17 minutes ago -
function predictKNN which computes the KNN prediction for given
input xi, K and train data.
A...
asked 29 minutes ago -
A 3.15-g bullet embeds itself in a 1.17-kg block, which is
attached to a spring of...
asked 43 minutes ago -
A hawk is flying horizontally at 24.0 m/s in a straight line,
185 m above the...
asked 44 minutes ago