Question

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2829 S$/US$. You have just placed an order for 29,000 motherboards at a cost to you of 237.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 each.

  

What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Profit at the current exchange rate

$

What is your profit if the exchange rate goes up by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Profit if the exchange rate up by 10%

$

What is your profit if the exchange rate goes down by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.)

  

Profit if the exchange rate down by 10%

$

  

What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.)

  

Break-even exchange rate

S$   /$

  

What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  

Percentage change

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Add-ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut Σ AutoSum : A 11 A = = = V General BEHEERDEA A A Wrap Text Merge & Center - $ :.: % , Number Fill 2 Clear Formatting as Table Styles Styles Sort & Filter Editing Find & Select Alignment Cells Calibri E Copy Paste Format Painter BIU - D Clipboard Font WW104 - foc WM WN WO 89 WPWQ WR WS WT WU w w w w Formula Bar WY 90 COST OF MOTHERBOARD = 237/1.2829 = PROFIT = 29000*(195 - 184.7377) = 184.7377 297606.59 (NO INTERMEDIATE ROUNDING IS DONE) 91 92 93 1.4112 94 95 96 EXCHANGE RATE GOES UP BY 10% NEW EXCHANGE RATE = 1.1*1.2829= COST OF MOTHERBOARD = 237/1.4112 = PROFIT = 29000*(195 - 167.9434) = 167.9434 784642.36 (NO INTERMEDIATE ROUNDING IS DONE) 97 1.1546 98 99 100 101 102 EXCHANGE RATE GOES DOWN BY 10% NEW EXCHANGE RATE = 0.9*1.2829 = COST OF MOTHERBOARD = 237/1.1546 = PROFIT = 29000*(195 - 205.2641) = 205.2641 -297659.34 (NO INTERMEDIATE ROUNDING IS DONE) 103 BREAKEVEN EXCHANGE RATE = 237/SPOT RATE = 195 SPOT RATE = 104 1.2154 105 106 107 % RISE/FALL IN TERMS OF SINGAPORE DOLLARS FALL KE CAPM UTILITY, SHARPE, beta convexity DGM betaport future INDEX INTL CAP BUD ferences: IP17 (1.2154-1.2829)/1.2829 = -5.26% 5.26% SANDRINE LEASING PV, FV, ANNUITY DIR right clean RI O HON Red O- YIELD bond portfolio WACC DOI 130% - 9 * * *0 ENG 2. B 30-11-2019