Will the exporter be benefited or suffered from this change

Assignment Help Financial Management

Reference no: EM132019439

a. If the spot FX rate for the Swiss franc changes from CHF0.8769/$ to CHF0.9203/$, has the Swiss franc depreciated against the US dollar? If the spot FX rate for the euro changes from $1.1410/euro, to $1.0933/euro, has the US dollar depreciated against euro?

b. A US exporter has a Swiss franc receivable. If the Swiss franc appreciates in FX price between now and the due date of the receivable, will the exporter be benefited or suffered from this change? Why?

c. A US importer has a Japanese yen payable. If the US dollar depreciates in FX price (relative to the yen) between now and the due date of the payable, will the importer be benefited or suffered from this change? Why?

Reference no: EM132019439

Questions Cloud

What is the value of the stock today : Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

Compute the total amount of additional code : Compute the total amount of additional code Sec. 263 A costs to capitalize for FIFO inventory under the simplified production method

What is the corresponding ear : Find the APR for this loan. What is the corresponding EAR?

What will ttc dividend and capital gains yields be : What will TTC's dividend and capital gains yields be once its period of supernormal growth ends? (Hint: These values will be the same regardless.

Will the exporter be benefited or suffered from this change : If the Swiss franc appreciates in FX price between now and the due date of the receivable, will the exporter be benefited or suffered from this change?

How much is the total cash flow net of income taxes : The company uses straight-line depreciation on all equipment. How much is the total cash flow net of income taxes in year 2

How far away is the horizon date : NONCONSTANT GROWTH VALUATION Hart Enterprises recently paid a dividend, D_0, of $1.25. It expects to have nonconstant growth of 20% for 2 years followed.

At what constant rate is the stock expected to grow : Carnes Cosmetics Co.'s stock price is $69.04, and it recently paid a $2.25 dividend. This dividend is expected to grow by 30% for the next 3 years.

What can jen company do with the adjustment : What is Jen Company's required adjustment due to the change in accounting methods? What can Jen's company do with the adjustment

User Account

All Pages