a. 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.) b. 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.) c. 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.) d. What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) e. 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.)
a. 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.) b. 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.) c. 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.) d. What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) e. 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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Suppose your company imports computer motherboards from Singapore. The exchange
rate is currently 1.2633 S$/US$. You have just placed an order for 23,000 motherboards
at a cost to you of 236.50 Singapore dollars each. You will pay for the shipment when it
arrives in 90 days. You can sell the motherboards for $200 each.
a. What is your profit at the current exchange rate? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is your profit if the exchange rate goes up by 10 percent? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is your profit if the exchange rate goes down by 10 percent? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A
negative answer should be indicated by a minus sign.)
d. What is the break-even exchange rate? (Round your answer to 4 decimal places,
e.g., 32.1616.)
e. What percentage rise or fall does this represent in terms of the Singapore dollar
versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
> Answer is complete but not entirely correct.
294,213.70
685,648.63
-184,460.00 X
a. Profit at the current exchange rate
b. Profit if the exchange rate increases by 10%
c. Profit if the exchange rate decreases by 10%
d. Break-even exchange rate S
e. Percentage change
S
S
S
S
CA
1.1825 /$
-6.40 X % Fall
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