Reference no: EM131367757
Start with the partial model in the file IFM9 Ch27 P13 Build a Model.xls from the ThomsonNOW Web site. Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually must buy its raw materials in several different foreign countries using several different foreign currencies. The matter is further complicated because Yohe usually sells its products in other foreign countries. One product in particular, the SY-20 radio transmitter, draws its principal components, Component X, Component Y, and Component Z, from Germany, Mexico, and England, respectively. Specifically, Component X costs 84 euros, Component Y costs 650 Mexican pesos, and Component Z costs 105 British pounds. The largest market for the SY-20 is in Japan, where it sells for 38,000 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. You will find Tables 27-1, 27-2, and 27-3 useful for this problem.
a. How much, in dollars, does it cost for Yohe to produce the SY-20? What is the dollar sale price of the SY-20?
b. What is the dollar profit that Yohe makes on the sale of the SY-20? What is the percentage profit?
c. If the U.S. dollar were to weaken by 10 percent against all foreign currencies, what would be the dollar profit for the SY-20?
d. If the U.S. dollar were to weaken by 10 percent 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?
e. Using the forward exchange information from Table 27-3, calculate the return on 1-year securities in England, if the rate of return on 1-year securities in the United States is 4.9 percent.
f. Assuming that purchasing power parity (PPP) holds, what would be the sale price of the SY-20 if it were sold in England rather than Japan?
Effect of changes in all financial metrics
: Perform an internet search for a current health care organization of your choice (preferably publicly traded for-profit organizations because these organizations must report all financial data and make it available to the public). In your search, ..
|
Conduct a strategic audit for your project
: You should begin working on the Stand-Alone Project early in the course. Each assignment provides a benchmark for completing the Stand-Alone Project in a timely manner while working through the course. You will find this information in the "Stand-..
|
What should be the price of the same disk in mexico
: In the spot market 7.8 pesos can be exchanged for 1 U.S. dollar. A compact disk costs $15 in the United States. If purchasing power parity holds, what should be the price of the same disk in Mexico?
|
What is the scope of the degree programs offered
: Is the institution a community college, private or public liberal arts college, research university, proprietary university, career college, etc - What is the scope of the degree programs offered? How many? What general kinds? What is your mission ..
|
What is the dollar profit
: How much, in dollars, does it cost for Yohe to produce the SY-20? What is the dollar sale price of the SY-20?- What is the dollar profit that Yohe makes on the sale of the SY-20? What is the percentage profit?
|
The number of stockouts for particular item
: Management has not been pleased with the number of stockouts for a particular item. This item has 750 pounds of demand during the lead time and a standard deviation during the lead time of 45 pounds. Calculate the Safety Stock assuming a 4% risk leve..
|
Characteristics of the project lifecycle
: Since this is your first project with the company, your manager would like to test your project management knowledge before you can begin to work on your own. Your manager has asked you to describe the characteristics of the project lifecycle and ..
|
Resource reducion-emission reduction-production innovation
: For your Gaming laptop business like (Alienware, Asus, and Razer), how will you incorporate sustainability into it. Specifically within the pillars of Social and Enviromental: Firm activities that improve the enviromental pillar can be categorized as..
|
What is the apparent communication objective
: MRKT 1001: Research a brand that you know well - briefly describe the brand character or image.Target audience - visit InfoScout and create a 1-paragraph profile or the target audience. Find an example of a promotion for this brand. What type of ..
|