Finder Health Corp is one of the biggest companies in the United States with the market capital $69.2 billion. It also operated in Singapore and United Kingdom. Below are the details of the transactions for Finder Health Corp throughout the year: i. The total sales produced for each countries is 900,000 units. United States produce 500 000 units with USD25 per unit, 200000 units is from Singapore at SGD18 and the remaining balance is from United Kingdom at GBP30 per unit. ii. In order to reduce the cost of production, Finder Health Corp import the cost of material which imported from United Kingdom is 400000 unit at GBP15 per unit. The balance was incurred in Singapore where the cost of material is SGD15 per unit. iii. Fixed costs is USD 950000 and variable operating expenses represent approximately 10 percent of each from United States and only United Kingdom which out of their sales. iv. Interest expense is estimated at SGD 75000 on Singapore loans only. v. The exchange rate provides starting from SGD1.36/USD, SGD1.40/USD and SGD1.42/USD for Singapore and GBP 0.74/USD, GBP0.78/USD and GBP0.80/USD for United Kingdom by following three scenarios. Show the forecasted net cash flow in three scenarios for Finder Health Corp.

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
icon
Related questions
Question
Finder Health Corp is one of the biggest companies in the United States with the
market capital $69.2 billion. It also operated in Singapore and United Kingdom.
Below are the details of the transactions for Finder Health Corp throughout the year:
i.
The total sales produced for each countries is 900,000 units. United
States produce 500 000 units with USD25 per unit, 200000 units is from
Singapore at SGD18 and the remaining balance is from United Kingdom at
GBP30 per unit.
ii. In order to reduce the cost of production, Finder Health Corp import the
cost of material which imported from United Kingdom is 400000 unit at GBP15
per unit. The balance was incurred in Singapore where the cost of material is
SGD15 per unit.
Fixed costs is USD 950000 and variable operating expenses represent
approximately 10 percent of each from United States and only United Kingdom
which out of their sales.
iv. Interest expense is estimated at SGD 75000 on Singapore loans only.
v. The exchange rate provides starting from SGD1.36/USD, SGD1.40/USD
and SGD1.42/USD for Singapore and GBP 0.74/USD, GBP0.78/USD and
GBP0.80/USD for United Kingdom by following three scenarios.
Show the forecasted net cash flow in three scenarios for Finder Health Corp.
Transcribed Image Text:Finder Health Corp is one of the biggest companies in the United States with the market capital $69.2 billion. It also operated in Singapore and United Kingdom. Below are the details of the transactions for Finder Health Corp throughout the year: i. The total sales produced for each countries is 900,000 units. United States produce 500 000 units with USD25 per unit, 200000 units is from Singapore at SGD18 and the remaining balance is from United Kingdom at GBP30 per unit. ii. In order to reduce the cost of production, Finder Health Corp import the cost of material which imported from United Kingdom is 400000 unit at GBP15 per unit. The balance was incurred in Singapore where the cost of material is SGD15 per unit. Fixed costs is USD 950000 and variable operating expenses represent approximately 10 percent of each from United States and only United Kingdom which out of their sales. iv. Interest expense is estimated at SGD 75000 on Singapore loans only. v. The exchange rate provides starting from SGD1.36/USD, SGD1.40/USD and SGD1.42/USD for Singapore and GBP 0.74/USD, GBP0.78/USD and GBP0.80/USD for United Kingdom by following three scenarios. Show the forecasted net cash flow in three scenarios for Finder Health Corp.
Expert Solution
steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education