PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 27, Problem 5PS
Summary Introduction
To determine: The missing figures.
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TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €.
Exchange Rate Table for Month 1
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.32
.16
.0088
1.13
British Pound
.76
---
.12
.0067
.85
Chinese Yuan
6.37
8.46
---
.056
7.21
Japanese Yen
113.04
149.55
17.75
---
127.55
Euro
.89
1.17
.14
.0078
---
Exchange Rate Table for Month 2
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.40
.20
.0080
1.17
British Pound
.70
---
.11
.0065
.89
Chinese Yuan
6.20
8.72
---
.062
7.59
Japanese Yen
116.24
146.89
16.32
---
117.2
Euro
.92
1.11
.15
.0078
---
An American family goes on vacation…
TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €.
Exchange Rate Table for Month 1
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.32
.16
.0088
1.13
British Pound
.76
---
.12
.0067
.85
Chinese Yuan
6.37
8.46
---
.056
7.21
Japanese Yen
113.04
149.55
17.75
---
127.55
Euro
.89
1.17
.14
.0078
---
Exchange Rate Table for Month 2
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.40
.20
.0080
1.17
British Pound
.70
---
.11
.0065
.89
Chinese Yuan
6.20
8.72
---
.062
7.59
Japanese Yen
116.24
146.89
16.32
---
117.2
Euro
.92
1.11
.15
.0078
---
An American company contracts a…
TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €.
Exchange Rate Table for Month 1
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.32
.16
.0088
1.13
British Pound
.76
---
.12
.0067
.85
Chinese Yuan
6.37
8.46
---
.056
7.21
Japanese Yen
113.04
149.55
17.75
---
127.55
Euro
.89
1.17
.14
.0078
---
Exchange Rate Table for Month 2
US Dollar
$1 =
British Pound
1 £ =
Chinese Yuan
1 Y =
Japanese Yen
1 ¥ =
Euro
1€
US Dollar
---
1.40
.20
.0080
1.17
British Pound
.70
---
.11
.0065
.89
Chinese Yuan
6.20
8.72
---
.062
7.59
Japanese Yen
116.24
146.89
16.32
---
117.2
Euro
.92
1.11
.15
.0078
---
A currency depreciates (or gets…
Chapter 27 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 27 - Exchange rates Look at Table 27.1. a. How many...Ch. 27 - Exchange rates Table 27.1 shows the 3-month...Ch. 27 - Prob. 3PSCh. 27 - Prob. 4PSCh. 27 - Prob. 5PSCh. 27 - Prob. 6PSCh. 27 - Prob. 8PSCh. 27 - Prob. 9PSCh. 27 - Prob. 10PSCh. 27 - Currency risk Companies may be affected by changes...
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