Find How much profit did Mr Jorus make

Assignment Help Financial Accounting
Reference no: EM132945987

Problem 1: At the start of the last year the annual interest rate was 5 percent in the United States and 2.5 percent in Japan. The exchange rate was 102.12 yen per dollar at the time. Mr. Jorus, who is the manager of a Bermuda-based hedge fund, thought that the substantial interest advantage associated with investing in the United States relative to investing in Japan was not likely to be offset by the decline of the dollar against the yen. He thus concluded that it might be a good idea to borrow in Japan and invest in the United States. At the start of the year, in fact, he borrowed ¥781 million for one year and invested in the United States. At the end of the year the exchange rate became 105.82 yen per dollar. How much profit did Mr. Jorus make (USD, no cents)?

Reference no: EM132945987

Questions Cloud

What is PV of financial distress costs the firm will incur : If the share price rises to $60 after this announcement, what is the PV of financial distress costs the firm will incur as the result of this new debt
What is the yield to maturity : The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $989. What is the yield to maturity
Ethical dilemma for a community service : Ethical dilemma for a community service worker in a professional context - Demonstrate a clear ethical decision-making process
What the share capital-ordinary : Share premium-ordinary 600,000. If a 100% share dividend were declared and distributed, share capital-ordinary would be
Find How much profit did Mr Jorus make : At the end of the year the exchange rate became 105.82 yen per dollar. How much profit did Mr. Jorus make (USD, no cents)?
At what amount would the account would increase as a result : At what amount would the "Share Premium-Preference" account would increase as a result of the transaction
Determine part of the return due to change in stock price : Determine the part of the return due to the change in stock price? Suppose you are a euro-based investor who just sold Microsoft shares.
Calculate the quality spread differential for alpha company : Assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting. Calculate the quality spread differential (QSD)
How much is the realized gross profit recognized in the year : Subsequent cash collections during the period amount to 6,000. How much is the realized gross profit recognized in the year of sale

Reviews

Write a Review

Financial Accounting Questions & Answers

  Committee of the jse securities exchange

Information that a listed company has incurred exceptionally high losses during a financial year has been disclosed.

  What should be the total value of the two items of inventory

What should be the total value of these two items of inventory in the statement of financial position? Neshila Ltd has only 2 items of inventory at reporting

  Explain how the perpetual and periodic inventory systems

explain how the perpetual and periodic inventory systems differ especially in determining cost of goods sold and ending

  Fifo method of pricing of issues of materials

Prepare a store ledger account from the information adopting the FIFO method of pricing of issues of materials

  Show the entry to establish the partnership

Show the entry to establish the partnership. A. Rodgers and T. Brady decide to start up a partnership. Rodgers brings in $10,000 cash and equipment

  Role of accounting and ethics in business

Describe the nature of business and the role of accounting and ethics in business. Also summarize the development of accounting principles and relate

  Find how long individual has been involved in credit markets

Credit evaluators consider the length of a person's credit history because it provides information about how long individual has been involved in credit markets

  Compute the amount of overstatement or understatement

Compute the amount of overstatement or understatement for each of the amounts for the period. A retailer completed physical count of ending merchandise.

  At illustrate what price was the bond issued

The bond has a stated interest rate of 6 percent. On January 1, 2011, when the bond was issued, the market rate was 8 percent. The bond pays interest twice per year, on June 30 and December 31. At illustrate what price was the bond issued?

  What amount should be reported as cash

Question - Windsor Enterprises owns the following assets at December 31, 2020. What amount should be reported as cash

  Determine what is the value of the stock today

If the required return on the stock is 16%, what is the value of the stock today (assume the market is in equilibrium with the required return equal)

  The cost of an asset less accumulated depreciation equals

If the balance of supplies at the start of the month was $700 and at the end of the month you had $250 on hand, the adjustment for Supplies would be: The cost of an asset less accumulated depreciation equals:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd