Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2861 S$/US$. You have just placed an order for 28,000 motherboards at a cost to you of 232.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 each. a. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is your profit if the exchange rate goes up by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Profit at current exchange rate b. Profit if the exchange rate increases 10 percent c. Profit if the exchange rate decreases 10 percent d. Break-even exchange rate S$ e. Percentage change % /$
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2861 S$/US$. You have just placed an order for 28,000 motherboards at a cost to you of 232.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 each. a. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is your profit if the exchange rate goes up by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Profit at current exchange rate b. Profit if the exchange rate increases 10 percent c. Profit if the exchange rate decreases 10 percent d. Break-even exchange rate S$ e. Percentage change % /$
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
Related questions
Question
Q 3 chap 21
Transcribed Image Text:Suppose your company imports computer motherboards from Singapore. The exchange
rate is currently 1.2861 S$/US$. You have just placed an order for 28,000 motherboards
at a cost to you of 232.00 Singapore dollars each. You will pay for the shipment when it
arrives in 90 days. You can sell the motherboards for $195 each.
a. What is your profit at the current exchange rate? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is your profit if the exchange rate goes up by 10 percent over the next 90 days?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
c. What is your profit if the exchange rate goes down by 10 percent over the next 90
days? (A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. What is the break-even exchange rate? (Round your answer to 4 decimal places,
e.g., 32.1616.)
e. What percentage rise or fall does this represent in terms of the Singapore dollar
versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
a. Profit at current exchange rate
b. Profit if the exchange rate increases 10 percent
c. Profit if the exchange rate decreases 10
percent
d. Break-even exchange rate S$
e. Percentage change
%
/$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
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…
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