FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A U.S retailer imports readymade garments worth 120 million rupees from india when the exchange rate is 60 rupees per USD. The import invoice is

A U.S retailer imports readymade garments worth 120 million rupees from india when the exchange rate is 60 rupees per USD. The import invoice is payable in 3 months. In three months, the exchange rate changes to 55 rupees per dollar. What is the approximate percentage exchange loss or gain from this transaction to the U.S. retailer?


Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

Heres how to calculate the approximate percentage exchange rate loss for the US retailer Step 1 Cost ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Core Principles And Applications

Corporate Finance Core Principles And Applications

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

6th Edition

1260571122, 978-1260571127

More Books

Students also viewed these Finance questions

Question

★★★★★
A currency dealer, Nancy Wood, working for a U.S. bank took a 5,000,000 British pound short position when the exchange rate for the dollar/ was $1.5500. The exchange rate then changed to $1.6100. a....

Answered: 1 week ago

Question

★★★★★
The information provided in this test allows you to set up all ledgers for an Ontario company named DERMAL DECOR. Dermal Decor specializes in high quality aesthetic body art with sterile equipment....

Answered: 1 week ago

Question

★★★★★
Gold has served as a medium of exchange and a store of value. The increase in trade led each country to set a par value for its currency in terms of gold. The gold standard as an international...

Answered: 1 week ago

Question

★★★★★
XY is a pharmaceutical company with the head-quarter in the United States. However, its cash flow depends only on sales in Japan. It receives a cash flow of Yen 20 billion with certainty in t=1. The...

Answered: 1 week ago

Question

★★★★★
Suppose the stock discussed above pays dividends. Assume all parameters are the same. Consider these three forms of dividends paid by the firm and in each case determine if the option will be...

Answered: 1 week ago

Question

★★★★★
For this reason, if the fair value of an item of inventory at the end of an accounting period is lower than its original cost, the item is written down to its f ___ v ____ . For example, for an item...

Answered: 1 week ago

Question

★★★★★
3. Laugh at the right time for the right time.

Answered: 1 week ago

Question

★★★★★
Max and Veronica Shuman, along with their teenage sons, Terry and Thomas, live in Portland, Oregon. Max is a sales rep for a major medical firm, and Veronica is a personnel officer at a local bank....

Answered: 1 week ago

Question

★★★★★
Explain direct method and indirect method of preparing statement of cash flows using the following information pertaining to Ajay Ltd Statement of profit and Loss for the year ended 31/03/2017 Sales...

Answered: 1 week ago

Question

★★★★★
On December 31, 2023, Stilton Service Companys year-end, the unadjusted trial balance included the following items: Required 1. Prepare the adjusting entry on the books of Stilton Service Company to...

Answered: 1 week ago

Question

★★★★★
IvanhoeCorp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling515,500units of product:...

Answered: 1 week ago

Question

★★★★★
3. Which among the following is popularly called Hypo? [A] Silver bromide [B] Silver nitrate [C] Sodium thiosulphate [D] Sodium phosphate

Answered: 1 week ago

Question

★★★★★
1. Daltons name is associated with which of the following terms? [A] Electron [B] Proton [C] Atom [D] Neutron

Answered: 1 week ago

Question

★★★★★
Define Administration?

Answered: 1 week ago

Question

★★★★★
Define Decision making

Answered: 1 week ago

Question

★★★★★
What are the major social responsibilities of business managers ?

Answered: 1 week ago

Question

★★★★★
Note: this question has two parts. Select only one response for each part. Let P (z, y, z) be the statement zy = z . What are the truth values of the following statements where the domain of all...

Answered: 1 week ago

Question

★★★★★
Suppose that A is an m n matrix with linearly independent columns and the linear system LS(A, b) is consistent. Show that this system has a unique solution.

Answered: 1 week ago

Question

★★★★★
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its...

Answered: 1 week ago

Question

★★★★★
Find the APR in each of the following cases: APR Number of Times Compounded EAR Semiannually 9.9% Monthly 11.4 Weekly 15.5 Infinite 16.3

Answered: 1 week ago

Question

★★★★★
The Optical Scam Company has forecast a sales growth rate of 18 percent for next year. The current financial statements are shown below. Current assets, fixed assets, and short-term debt are...

Answered: 1 week ago

Question

★★★★★
The article The Influence of Corrosion Inhibitor and Surface Abrasion on the Failure of Aluminum-Wired Twist-On Connections (IEEE Trans. on Components, Hybrids, and Manuf. Tech., 1984: 2025) reported...

Answered: 1 week ago

Question

★★★★★
The level of monoamine oxidase (MAO) activity in blood platelets (nm/mg protein/h) was determined for each individual in a sample of 43 chronic schizophrenics, resulting in and , as well as for 45...

Answered: 1 week ago

Question

★★★★★
Consider the accompanying data on breaking load (kg/25 mm width) for various fabrics in both an unabraded condition and an abraded condition (The Effect of Wet Abrasive Wear on the Tensile Properties...

Answered: 1 week ago

Previous Question Next Question