BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 7, Problem 4P
Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 240,000 reals in Brazil worth 170,000 dollars. It drew 12 percent interest, but the Brazilian real declined 24 percent against the dollar.
a. What is the value of its holdings, based on U.S. dollars, at year-end?
b. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 9 percent interest and the real went up by 13 percent against the dollar?
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Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 280,000 reals in Brazil worth 210,000 dollars. It drew 9 percent interest, but the Brazilian real declined 18 percent against the dollar.
a. What is the value of its holdings, based on U.S. dollars, at year-end? (Do not round intermediate calculations.)
b. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 6 percent interest and the real went up by 10 percent against the dollar? (Do not round intermediate calculations.)
Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 420,000 reals in Brazil worth 350,000 dollars. It drew 9 percent interest, but the Brazilian real declined 18 percent against the dollar.
What is the value of its holdings, based on U.S. dollars, at year-end?
Note: Do not round intermediate calculations.
What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 6 percent interest and the real went up by 10 percent against the dollar?
Note: Do not round intermediate calculations.
Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 320,000 reals in Brazil worth 250,000 dollars. It drew 13 percent interest, but the Brazilian real declined 26 percent against the dollar.a. What is the value of its holdings, based on U.S. dollars, at year-end? (Do not round intermediate calculations.)
b. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 10 percent interest and the real went up by 14 percent against the dollar? (Do not round intermediate calculations.)
Chapter 7 Solutions
BUS 225 DAYONE LL
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Why would a financial manager want to slow down...Ch. 7 - Use The Wall Street Journal or some other...Ch. 7 - Why are Treasury bills a favorite place for...Ch. 7 - Explain why the bad debt percentage or any other...Ch. 7 - What are three quantitative measures that can be...Ch. 7 - Prob. 8DQCh. 7 - What does the EOQ formula tell us? What assumption...Ch. 7 - Why might a firm keep a safety stock? What effect...
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