Question: Hello, please could you help me with solving this assignment? Thank you Excel Activity: Multinational Financial Management Yohe Telecommunications is a multinational corporation that produces

Hello, please could you help me with solving this assignment? Thank you

Hello, please could you help me with solving this assignment? Thank youExcel Activity: Multinational Financial Management Yohe Telecommunications is a multinational corporation thatproduces and distributes telecommunications technology. Although its corporate headquarters are located inMaitland, Florida, Yohe usually buys its raw materials in several different foreigncountries using several different foreign currencies. The matter is further complicated because

Excel Activity: Multinational Financial Management Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually buys its raw materials in several different foreign countries using several different foreign currencies. The matter is further complicated because Yohe often sells its products in other foreign countries. One product in particular, the SY-20 radio transmitter, draws Component X, Component Y, and Component Z (its principal components) from Switzerland, France, and the United Kingdom, respectively. Specifically, Component X costs 175 Swiss francs, Component Y costs 25 euros, and Component Z costs 105 British pounds. The largest market for the SY-20 is Japan, where the product sells for 50,000 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. Exchange Rates: Tuesday, September 15, 2020 Direct Quotation: Indirect Quotation: U.S. Dollars Required Number of Units of to Buy One Unit of Foreign Currency Foreign Currency per U.S. Dollar Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (wsj.com), September 15, 2020. Key Currency Cross Rates: Tuesday, September 15, 2020 Note: Column 1 shows how many units of each foreign currency a U.S. dollar would buy, column 2 shows how many units a franc would buy, and so on for the other columns. Source: Adapted from data provided in Table Exchange Rates for September 15, 2020. Spot and Forward Exchanqe Rates (Number of Units of Foreian Currency per U.S. Dollar): Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar): Tuesday, September 15, 2020 Forward Rates Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, September 15, 2020. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. C. If the U.S. dollar was to weaken by 12% against all foreign currencies, what would be the dollar and percentage profits for the SY-20? Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places. Dollar profit: \$ Percentage profit: % d. If the U.S. dollar was to weaken by 12% only against the Japanese yen and remained constant relative to all other foreign currencies, what would be the dollar and percentage profits for the SY-20? Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places. Dollar profit: $ Percentage profit: % e. Using the 180-day forward exchange information, calculate the return on 1-year securities in Switzerland assuming the rate of return on 1-year securities in the United States is 5.0\%. Assume that there are 360 days in a year. Round your answer to two decimal places. % f. Assuming that purchasing power parity (PPP) holds, what would be the sale price of the SY-20 if it was sold in the United Kingdom rather than Japan? Round your answer to the nearest penny.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!