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 175 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 52,500 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates.

Exchange Rates: Thursday, September 3, 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		1.3280		0.7530
EMU euro		1.1853		0.8437
Japanese yen		0.009416	10	6.2022
Swiss franc		1.0997		0.9093
Note: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur.
Source: Adapted from The Wall Street Journal (wsj.com), September 3, 2020.

Key Currency Cross Rates: Thursday, September 3, 2020
	USDollar	SFranc	Yen	Euro	Pound
	(1)	(2)	(3)	(4)	(5)
United Kingdom		0.7530		0.8281		0.007090		0.8925
Euro		0.8437		0.9278		0.007944				1.1204
Japan	10	6.2022	11	6.7906			12	5.8815	14	1.0365
Switzerland		0.9093				0.008562		1.0778		1.2076
United States				1.0997		0.009416		1.1853		1.3280
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 September 3, 2020.

Spot and Forward Exchange Rates (Number of Units of Foreign Currency per U.S. Dollar):
Thursday, September 3, 2020
		Forward Rates
					Forward Rate
					at a Premium
	Spot Rate	30 Days	90 Days	180 Days	or Discount
Swiss franc	0.9093	0.908730	0.907590	0.905884	Premium
Source: "Forward Rates Calculator," investing.com/tools/forward-rates-calculator, September 3, 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-912def.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 __

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

$ fill in the blank __

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 __

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

fill in the blank __ %

If the U.S. dollar was to weaken by 7% 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 __

Percentage profit: fill in the blank __ %

If the U.S. dollar was to weaken by 7% 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

Percentage profit: fill in the blank __ %

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 4.6%. Assume that there are 360 days in a year. Round your answer to two decimal places.

fill in the blank __ %

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 __