ZuoTi.Pro
Question

Your firm needs to pay its French supplier €458,000. If the exchange rate is $€0.68/$?, how...

Your firm needs to pay its French supplier €458,000. If the exchange rate is $€0.68/$?, how many dollars will you need to make the? exchange?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Currency exchange problems are best solvable by unitary method

For the given question,

1$ = Euro 0.68

=> 1 Euro = $1.4705882

Now, we have to pay Euro 458,000

This means, applying the exchange rate we calculated, we would need = $458,000 * 1.4706 = $673,529.41

0 0
Add a comment
Know the answer?
Add Answer to:
Your firm needs to pay its French supplier €458,000. If the exchange rate is $€0.68/$?, how...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Your firm is a monopoly supplier of a good. The inverse demand for your good (in...

    Your firm is a monopoly supplier of a good. The inverse demand for your good (in dollars) is given by P=250−0.02Q . Your firm's cost function (in dollars) is C(Q)=400000+22Q+0.01Q2. Some of that cost comes from a critical part that you import from England that currently costs you $12.00 US for every unit of output that you produce. The current exchange rate is 1.20 $/£. How much profit (in $US) does your firm make? Round your answer to the nearest...

  • 2. A French firm is buying $1,000,000 of optical cable from a firm in the United...

    2. A French firm is buying $1,000,000 of optical cable from a firm in the United States. The French firm will pay for the cable in thirty days. To protect itself from changes in the exchange rate between the Euro and dollar, the French firm enters into a futures contract to purchase $1,000,000 at a price of $1.25/6. How many Euros will it cost the French firm to purchase $1,000,000 using the futures contract? a. €125,000,000 b. €2,500,000 c. €1,250,000...

  • A French firm is considering selling its line of laundry machines in the U.K. The business...

    A French firm is considering selling its line of laundry machines in the U.K. The business risk will be identical to the firm's existing line of business in the euro zone, the cost of capital in the euro zone is i€ = 10%. The expected inflation rate over the next two years in the U.K. is 3% per year and 2% per year in the euro zone. The spot exchange rates are $1.80 = £1.00 and $1.15 = €1.00. The...

  • Questions 3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against...

    Questions 3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security 4. Exchange Rate Effects on Borrowing. Explain how the appreciation of the Japanese yen against the U.S. dollar would affect the return to a U.S. firm that borrowed Japanese yen and used the proceeds for a U.S. project. 6. Bid/ask Spread. Utah Bank's s bid...

  • . Your firm has a British customer that is willing to place a $1 million order, but wants to pay in pounds instead of do...

    . Your firm has a British customer that is willing to place a $1 million order, but wants to pay in pounds instead of dollars. The spot exchange rate is $1.85 = £1.00 and the one-year forward rate is $1.90 = £1.00. The lead time on the order is such that payment is due in one year. What is the appropriate rate of exchange to calculate how many pounds the British customer owes, given the market data which you have...

  • 1. Beaker, a US corporation, needs to pay S$ 1,000,000 after 90 days to its supplier...

    1. Beaker, a US corporation, needs to pay S$ 1,000,000 after 90 days to its supplier in Singapore. Following quotes are current in the market: 2.00 percent 2.50 percent US$ 0.6333/S$ US$ 0.6375/S$ 90-day Singapore interest rate 90-day US interest rate Spot exchange rate 90-day forward exchange rate Calls and Put are available with exercise price = the forward rate Assume that the spot rate after 90 days can be US$ 0.6300/S$, US$ 0.6375/S$, or US$ 0.6450/S$ (i) Show the...

  • Grant, Inc., is a well-known U.S. firm that needs to borrow 10 million British pounds to support a new business in the U...

    Grant, Inc., is a well-known U.S. firm that needs to borrow 10 million British pounds to support a new business in the United Kingdom. However, it cannot obtain financing from British banks because it is not yet established within the United Kingdom. It decides to issue dollar-denominated debt (at par value) in the U.S., for which it will pay an annual coupon rate of 10%. It then will convert the dollar proceeds from the debt issue into British pounds at...

  • DEF (French firm) will receive C$900,000 from one of its Canadian customers in three months. DEF ...

    DEF (French firm) will receive C$900,000 from one of its Canadian customers in three months. DEF decides to use put options to fully hedge its Canadian dollar receipt. Three month put options have 100,000 Canadian dollars attached. The options have an exercise price of 1.03 euros and a premium of .02 euros. Find DEF's profit/loss (in terms of euros) on their put option position if the exchange rate is .95 euros per Canadian dollar at expiration. 54,000 -54,000   6,000 -6,000

  • ABC needs $627,000 to take advantage of a special offer from their key supplier. The loan...

    ABC needs $627,000 to take advantage of a special offer from their key supplier. The loan will allow them to reduce their accounts payable and begin taking trade discounts. They plan to repay the loan in one year out of their normal operating cash flows. The bank has offered a one-year discountloan at an annual percentage rate of 5.25%. Given this information, how many dollars of interest is ABC expected to pay for this arrangement?

  • A firm that stretches its payables gains an extra 1 month before it needs to pay...

    A firm that stretches its payables gains an extra 1 month before it needs to pay for its purchases of raw materials but it loses a 2% discount for prompt payment. This is like borrowing at an effective annual interest rate of: Multiple Choice 19.40% 27.43% 24.00% 26.53%

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT