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 155 Swiss francs, Component Y costs 15 euros, and Component z costs 115 British pounds. The largest market for the Sy-20 is Japan, where the product sells for 52,500 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. Exchange Rates: Friday, August 7, 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 (1) (2) British pound 1.3050 0.7663 EMU euro 1.1787 0.8484 Japanese yen 0.009440 105.9322 Swiss franc 1.0959 0.9125 Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (wsj.com), August 7, 2020. Euro Pound Key Currency Cross Rates: Friday, August 7, 2020 USDollar SFranc Yen Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (wsj.com), August 7, 2020, Key Currency Cross Rates: Friday, August 7, 2020 USDollar SFranc Yen Euro Pound (1) (2) (3) (4) (5) United Kingdom 0.7663 0.8398 0.007234 0.9032 Euro 0.8484 0.9298 0.008009 1.1072 Japan 105.9322 116.0911 124.8623 138.2415 Switzerland 0.9125 0.008614 1.0756 1.1908 United States 1.0959 0.009440 1.1787 1.3050 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 August 7, 2020. Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar): Friday, August 7, 2020 Forward Rates Forward Rate at a Premium Spot Rate 30 Days 90 Days 180 Days or Discount Swiss franc 0.9125 0.911928 0.910784 0.909072 Premium Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, August 7, 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. 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 155 Swiss francs, Component Y costs 15 euros, and Component z costs 115 British pounds. The largest market for the SY-20 is Japan, where the product sells for 52,500 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. Exchange Rates: Friday, August 7, 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 (1) (2) British pound 1.3050 0.7663 EMU euro 1.1787 0.8484 Japanese yen 0.009440 105.9322 Swiss franc 1.0959 0.9125 Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (wsj.com), August 7, 2020. Key Currency Cross Rates: Friday, August 7, 2020 USDollar SFranc Yen Euro Pound Question 1 4/10 Submit (3) Key Currency Cross Rates: Friday, August 7, 2020 USDollar SFranc Yen Euro Pound (1) (2) (4) (5) United Kingdom 0.7663 0.8398 0.007234 0.9032 Euro 0.8484 0.9298 0.008009 1.1072 Japan 105.9322 116.0911 124.8623 138.2415 Switzerland 0.9125 0.008614 1.0756 1.1908 United States 1.0959 0.009440 1.1787 1.3050 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 August 7, 2020. Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar) Friday, August 7, 2020 Forward Rates Forward Rate at a Premium Spot Rate 30 Days 90 Days 180 Days or Discount Swiss franc 0.9125 0.911928 0.910784 0.909072 Premium Source: 'Forward Rates Calculator, investing.com/tools/forward-rates calculator, August 7, 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. X Download spreadsheet Multinational Financial Management-6986ad.xlsx a. How much in dollars does it cost Yohe to produce the SY-207 Round your answer to the nearest cent. $ 337.62 g What is the dollar sale price of the SY-207 Round your answer to the nearest cent. $ 495.6 b. What is the dollar profit that Yohe makes on the sale of the SY-207 Round your answer to the nearest cent. $ 157.98 What is the percentage profit? Round your answer to two decimal places. 46.79 % 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-207 Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places. Dollar profit: $ 179.52 Percentage pront: % Back Autosaved at 6:56 PM Next 46.79 % 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: 5 179.52 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-207 Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places. Dollar profit: $ 179.52 Percentage profit: 946 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 4.6%. Assume that there are 360 days in a year. Round your answer to two decimal places % 1. 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. Back