Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 320,000 reals in Brazil worth 250,000 dollars. It drew 13 percent interest, but the Brazilian real declined 26 percent against the dollar. a. What is the value of its holdings, based on U.S. dollars, at year-end? (Do not round intermediate calculations.) b. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 10 percent interest and the real went up by 14 percent against the dollar? (Do not round intermediate calculations.)

Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 320,000 reals in Brazil worth 250,000 dollars. It drew 13 percent interest, but the Brazilian real declined 26 percent against the dollar. a. What is the value of its holdings, based on U.S. dollars, at year-end? (Do not round intermediate calculations.) b. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 10 percent interest and the real went up by 14 percent against the dollar? (Do not round intermediate calculations.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter22: International Financial Management

Section: Chapter Questions

Problem 4P

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