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 25 euros, and Component Z costs 90 British pounds The largest market for the SY 20 is Japan, where the product sells for 55,000 Japanese yen Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates Exchange Rates Tuesday, December 22, 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 3365 0 7482 EMU euro 1 2162 0 8222 Japanese yen 0 009649 10 3 6377 Swiss franc 1 1241 0 8896 Note Column 2 equals 1 0 divided by column 1 However, rounding differences do occur Source Adapted from The Wall Street Journal (wsj com), December 22, 2020 Key Currency Cross Rates Tuesday, December 22, 2020 USDollar SFranc Yen Euro Pound (1) (2) (3) (4) (5) United Kingdom 0 7482 0 8411 0 007220 0 9100 Euro 0 8222 0 9243 0 007934 1 0989 Japan 10 3 6377 11 6 4991 12 6 0441 13 8 5118 Switzerland 0 8896 0 008584 1 0819 1 1890 United States 1 1241 0 009649 1 2162 1 3365 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 December 22, 2020 Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U S Dollar) Tuesday, December 22, 2020 Forward Rates Forward Rate at a Premium Spot Rate 30 Days 90 Days 180 Days or Discount Swiss franc 0 8896 0 889042 0 887927 0 886258 Premium Source Forward Rates Calculator, investing com tools forward rates calculator, December 22, 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 Download spreadsheet Multinational Financial Management 2eacd8 xlsx How much in dollars does it cost Yohe to produce the SY 20 Round your answer to the nearest cent $ fill in the blank 2 What is the dollar sale price of the SY 20 Round your answer to the nearest cent $ fill in the blank 3 What is the dollar profit that Yohe makes on the sale of the SY 20 Round your answer to the nearest cent $ fill in the blank 4 What is the percentage profit Round your answer to two decimal places fill in the blank 5 If the U S dollar was to weaken by 13 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 $ fill in the blank 6 Percentage profit fill in the blank 7 If the U S dollar was to weaken by 13 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 20 Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places Dollar profit $ fill in the blank 8 Percentage profit fill in the blank 9 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 5 0 Assume that there are 360 days in a year Round your answer to two decimal places fill in the blank 10 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 fill in the blank 11

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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

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 25 euros, and Component Z costs 90 British pounds. The largest market for the SY-20 is Japan, where the product sells for 55,000 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates.

Exchange Rates: Tuesday, December 22, 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		1.3365		0.7482
EMU euro		1.2162		0.8222
Japanese yen		0.009649	10	3.6377
Swiss franc		1.1241		0.8896
Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur.
Source: Adapted from The Wall Street Journal (wsj.com), December 22, 2020.

Key Currency Cross Rates: Tuesday, December 22, 2020
	USDollar		SFranc		Yen		Euro		Pound
	(1)		(2)		(3)		(4)		(5)
United Kingdom		0.7482		0.8411		0.007220		0.9100
Euro		0.8222		0.9243		0.007934				1.0989
Japan	10	3.6377	11	6.4991			12	6.0441	13	8.5118
Switzerland		0.8896				0.008584		1.0819		1.1890
United States				1.1241		0.009649		1.2162		1.3365
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 December 22, 2020.

Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar):
Tuesday, December 22, 2020
		Forward Rates
					Forward Rate
					at a Premium
	Spot Rate	30 Days	90 Days	180 Days	or Discount
Swiss franc	0.8896	0.889042	0.887927	0.886258	Premium
Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, December 22, 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.

Download spreadsheet Multinational Financial Management-2eacd8.xlsx

How much in dollars does it cost Yohe to produce the SY-20? Round your answer to the nearest cent.

$ fill in the blank 2

What is the dollar sale price of the SY-20? Round your answer to the nearest cent.

$ fill in the blank 3
What is the dollar profit that Yohe makes on the sale of the SY-20? Round your answer to the nearest cent.

$ fill in the blank 4

What is the percentage profit? Round your answer to two decimal places.

fill in the blank 5 %
If the U.S. dollar was to weaken by 13% 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: $ fill in the blank 6

Percentage profit: fill in the blank 7 %
If the U.S. dollar was to weaken by 13% 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-20? Round your answer for the dollar profit to the nearest cent and for the percentage profit to two decimal places.

Dollar profit: $ fill in the blank 8

Percentage profit: fill in the blank 9 %
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 5.0%. Assume that there are 360 days in a year. Round your answer to two decimal places.

fill in the blank 10 %
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.

fill in the blank 11