How many pounds sterling will middlebury receive

Assignment Help Financial Management

Reference no: EM131186282

Middlebury Herbal Products is a producer of herbal teas, seasonings, and medicines. Their products are marketed in the United Kingdom and in many parts of Europe and Asia. Middlebury generally invoices in the British pound sterling when it sells to foreign customers in order to guard against adverse exchange rate changes. Nevertheless, it has agreed to be paid in Singapore dollars for an order from a large wholesaler in Singapore.

The amount paid today to Middlebury is 500,000 Singapore dollars. Middlebury will sell the Singapore dollars immediately, because Middlebury only wants pounds sterling.

The bank only quotes an exchange rate in US dollars ($) for the Singapore dollar (S$). Mr. Peters learns that the spot rates for the pound, the euro, and the Singapore dollar versus the US dollar are $1.5180/pound sterling, $1.0798/euro and $0.2277/S$, respectively. How many pounds sterling will Middlebury receive?

Reference no: EM131186282

Questions Cloud

What would you pay for the call option : A firm has stock outstanding with a current price of $25 per share. The price in one period is expected to be either $30 or $35. A call option on ONE share is available with an exercise price of $20. If the risk-free rate of interest is 5%, what woul..

What is the firm market to book ratio : (Market value analysis) Lei Materials balance sheet lists total assets of $1.16 billion, $132 million in current liabilities, $415 million in long-terms debt, $613 million in common equity, and 58 million shares of common stock. If Lei'so current sto..

What is the horizon value at the end of year five : what is the horizon value at the end of year 5? The free cash flow is expected to grow 8% from year 1 to 5 and 6% after year 5 to infinity,

According to the value-base management model : According to the value-base management model, what is the stock price per share given the following data?: Year = 1, Revenue = 700.00, other income = 25.00, fixed costs = 90.00, variable costs = 280.00, additional investment in NWC = 3.00, additional..

How many pounds sterling will middlebury receive : Middlebury Herbal Products is a producer of herbal teas, seasonings, and medicines. Their products are marketed in the United Kingdom and in many parts of Europe and Asia. The amount paid today to Middlebury is 500,000 Singapore dollars. Middlebury w..

What is margin account balance : Before any trading, Peter begins with a margin account balance of $0. On May 1, Peter believes that silver will appreciate in the next 4 days. On May 1, Peter takes a long position in a futures contract for silver with a futures price of $10/ounce. o..

Compute pre-determined overhead rate under job order costing : In correspondence to SLOAT question number 2a. Compute pre-determined overhead rate under job order costing and determine the elements of manufacturing costs that are included in the Work in process Inventory, Finished Goods Inventory, and Cost of Go..

Calculate payback period and net present value : Two new production scheduling information systems for Ferro Corporation could be developed at a cost of $105,000 and $135,000 respectively. Interest rate is 15%. Calculate payback period (PBP), net present value (NPV), and internal rate of return (IR..

Firms assets does the firm finance using debt : Use this data campbell Industries liabilities and owner's equity. What percentage of the firm's assets does the firm finance using debt (liabilities)?

User Account

All Pages