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Question 24 1.54 pts Brent Bush, CFO of a medical device manufacturer, BioTron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal
Question 24 1.54 pts Brent Bush, CFO of a medical device manufacturer, BioTron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 15,000,000 every other month if it were given a 3.50% discount. Numata's current terms are 30 days with no discounts. Using the following quotes and estimated cost of capital for Numata, Bush will compare the proposal with covering yen payments with forward contracts. Spot rate, \/$ 30-day forward rate, \/$ 90-day forward rate, \/$ 180-day forward rate, \/$ Numata's WACC 103.86/$ 103.82/$ 103.71/$ 103.58/$ 7.50% BioTron Medical's WACC 9.00% How much will BioTron receive in US$s if Numata pays Yen in cash and receives the 3.5% discount? O Yen12,062,500 Yen116,142 O $119,503 O $116,142 Question 24 1.54 pts Brent Bush, CFO of a medical device manufacturer, BioTron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 15,000,000 every other month if it were given a 3.50% discount. Numata's current terms are 30 days with no discounts. Using the following quotes and estimated cost of capital for Numata, Bush will compare the proposal with covering yen payments with forward contracts. Spot rate, \/$ 30-day forward rate, \/$ 90-day forward rate, \/$ 180-day forward rate, \/$ Numata's WACC 103.86/$ 103.82/$ 103.71/$ 103.58/$ 7.50% BioTron Medical's WACC 9.00% How much will BioTron receive in US$s if Numata pays Yen in cash and receives the 3.5% discount? O Yen12,062,500 Yen116,142 O $119,503 O $116,142
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