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= Homework: HW 10 Question 1, Problem 10-... Part 1 of 3 HW Score: 0%, 0 of 18 points O Points: 0 of 3 Save
= Homework: HW 10 Question 1, Problem 10-... Part 1 of 3 HW Score: 0%, 0 of 18 points O Points: 0 of 3 Save Bio Tron Medical, Inc. Brent Bush, CFO of a medical device distributor, Bio Tron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 13,600,000 every other month if it were given a 3.9% discount. Numata's current terms are 30 days with no discounts. Using the quotes and estimated cost of capital for Bio Tron Medical in the popup window, : Bush will compare the proposal with covering yen payments with forward contracts. Should Brent Bush accept Numata's proposal? Assume a 360-day financial year. How much in U.S. dollars will Bio Tron Medical receive with the discount? - X $ (Round to the nearest cent.) Data table How much in U.S. dollars will Bio Tron Medical receive with no discount but fully covered with a forward contract? $(Round to the nearest cent.) Should Brent Bush accept Numata's proposal? (Select from the drop-down menu.) Spot rate: 110.02/S 30-day forward rate: 109.62/S 90-day forward rate: 108.42/5 180-day forward rate: 107.22/$ Numata's WACC 8.89% Bio Tron's WACC 9.42% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. (yes, No) Print Done
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