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Please help me with the following homework question. The Smile Company often sells merchandise to German customers. On December 1, 2013, Smile sold merchandise to
Please help me with the following homework question.
The Smile Company often sells merchandise to German customers.
On December 1, 2013, Smile sold merchandise to a German customer at a price of three million Euros.
The customer is required to pay for the goods on February 1, 2014.
The spot rate was $0.875 per euro on December 1, 2013; It was $0.8875 per euro on December 31, 2013; It was $0.865 per euro on February 1, 2014.
Assume that the Smile Company didn't hedge the American Dollar value of these Accounts receivables: how many American Dollars will Smile Company receive from the conversion of Euros?
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