Question: chapter 10 advanced problem x C Chronos Time Pieces. Chrono: X G how to remove space on goog DFT90XG35vimXtCmrUeQeRILBb7FM4/edit - 12 3 4 5 Problem

 chapter 10 advanced problem x C Chronos Time Pieces. Chrono: X

chapter 10 advanced problem x C Chronos Time Pieces. Chrono: X G how to remove space on goog DFT90XG35vimXtCmrUeQeRILBb7FM4/edit - 12 3 4 5 Problem 10.1 Bio Tron Medical, Inc. Brent Bush, CFO of a medical device manufacturer, Bio Tron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 12,500,000 every other month if it were given a 4% discount. Numata's current terms are 30 days with no discounts. Using the following quotes and estimated cost of capital for Numata, Bush will compare the proposal with covering yen payments with forward contracts. Should Brent Bush accept Numata's proposal? Spot rate, W/S 110/5 30-day forward rate, WIS W108/5 Bio Tron Medical's WACC 8.00% How much in U.S. dollars will Bio Tron Medical receive 1) with the discount and 2) with no discount but fully covered with a forward contract? .. 3 chapter 10 advanced problem x C Chronos Time Pieces. Chrono: X G how to remove space on goog DFT90XG35vimXtCmrUeQeRILBb7FM4/edit - 12 3 4 5 Problem 10.1 Bio Tron Medical, Inc. Brent Bush, CFO of a medical device manufacturer, Bio Tron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 12,500,000 every other month if it were given a 4% discount. Numata's current terms are 30 days with no discounts. Using the following quotes and estimated cost of capital for Numata, Bush will compare the proposal with covering yen payments with forward contracts. Should Brent Bush accept Numata's proposal? Spot rate, W/S 110/5 30-day forward rate, WIS W108/5 Bio Tron Medical's WACC 8.00% How much in U.S. dollars will Bio Tron Medical receive 1) with the discount and 2) with no discount but fully covered with a forward contract? .. 3

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