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 165 Swiss francs, Component Y costs 20 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: Thursday, December 17, 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		1.3583		0.7362
EMU euro		1.2269		0.8151
Japanese yen		0.009699	10	3.1034
Swiss franc		1.1308		0.8843
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 17, 2020.

Key Currency Cross Rates: Thursday, December 17, 2020
	USDollar	SFranc	Yen	Euro	Pound
	(1)	(2)	(3)	(4)	(5)
United Kingdom		0.7362		0.8325		0.007141		0.9033
Euro		0.8151		0.9217		0.007905				1.1071
Japan	10	3.1034	11	6.5893			12	6.4976	14	0.0454
Switzerland		0.8843				0.008577		1.0850		1.2012
United States				1.1308		0.009699		1.2269		1.3583
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 17, 2020.

Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar):
Thursday, December 17, 2020
		Forward Rates
					Forward Rate
					at a Premium
	Spot Rate	30 Days	90 Days	180 Days	or Discount
Swiss franc	0.8843	0.883745	0.882637	0.880978	Premium
Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, December 17, 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.

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 %

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 4.9%. 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