A British-made component costs 118 U.K. pounds. A company in the United States needs to buy these components and the current indirect quote indicates that one dollar will buy 0.92 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars?
A British-made component costs 118 U.K. pounds. A company in the United States needs to buy these components and the current indirect quote indicates that one dollar will buy 0.92 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter27: Multinational Financial Management
Section: Chapter Questions
Problem 8P
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Question
A British-made component costs 118 U.K. pounds. A company in the United States needs to buy these components and the current indirect quote indicates that one dollar will buy 0.92 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars?
Instruction: Type your answer in dollars, and round to two decimal places
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