Question

Use the information below to answer the questions that follow. CON CURRENCY PER U.S. U.K. Pound (£) Canada dollar U.S. $ EQUIVALENT 1.5738 1.0171 6354 9832 a. Which would you rather have, $100 or £100? b. Which would you rather have, $100 Canadian or £100? c. What is the cross-rate for Canadian dollars in terms of British pounds? (Do not include the Canadian dollar sign (C$). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) d. What is the cross-rate for British pounds in terms of Canadian dollars? (Do not include the pound sign (€). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) a. Rather have b. Rather have Cross-rate d. Cross-rate 100 pounds 100 pounds CS c. ICS

Answer 1

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0335 dx E ENG 03 01 2020 х 20 ke - Excel plavin mandura I lelp O Tell me what you want to do Page Layout Formulas 9. Share Tile Home Insert Data Review View X Cut > AutoSum - v11 b Wrap Text Calibri General A Copy- O Fill - Conditional Farmat as Cell Paste Insert Delete Format Sart & Find & = = = E = E Merge & Center BIU- - • Clear Format Painter Filter- Select Formatting - Table- Styles Aignmert Clipbcard Font Number Styies Cels Edring fr BN103 BG ВН BI BJ BK BL BM BN BO BP BQ BR BS BT US EQUIVALENT 92 CURRENCY PER US $ UK POUND 93 1.5738 0.6354 94 CANADIAN DOLLAR 1.0171 0.9832 95 96 (i) OBVIOUS WE WILL SELECT 100 POUND BECAUSE 100 POUNDS = 100 x 1.5738 = $157.38 97 98 99 (ii) OBVIOUS WE WILL SELECT 100 POUND BECAUSE 100 POUNDS = $ 157.38 AND 100 CANADIAN DOLLAR = 100 x 1.0171 = $ 101.71 100 101 102 WE GET MORE DOLLAR IF WE SELECT 100 POUND 103 104 OR THE OTHER WAY 100 POUND = 1.5738 x 0.9832 = CAN $ 154.74 THIS IS MORE THAN 100 CAN $ 105 106 107 (iii) 108 cross-rate for Canadian dollars in terms of British pounds IT IMPLIES "CAN$/1 POUND" 109 1.5738 x 0.9832 = 110 CROSS RATE = 1.5474 111 (iv) cross-rate for British pounds in terms of Canadian dollars IT IMPLIES "POUND/1 CANS" 112 0.6463 [1/1.5474] 113 CROSS RATE = INVERSE OF 1.5474 = WACC .-- O KE CAPM UILITY, SHARPE, beta cONvexity DGM beta port future INDEX PV, FV, ANNUITY| DIR right VIELD bond portfolio clean INTL CAP BUD SANDRINE LEASING circuar Relerences: GF400 + 130% Ready