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Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977
Textbook Problem

EXCHANGE RATES Use the foreign exchange section of a current issue of The Wall Street Journal to look up the six currencies in problem 19-5.

  1. a. What is the current exchange rate for changing dollars into 1,000 units of pounds, Canadian dollars, euros, yen, Mexican pesos, and Swedish kronas?
  2. b. What is the percentage gain or loss between the May 29, 2014, exchange rate and the current exchange rate for each of the currencies in part a?

a.

Summary Introduction

To identify: The dollars required to buy different currencies using current rate.

Introduction:

Foreign Exchange Rate: Foreign exchange rate refers to the rate required to obtain a currency in other country’s currency.

Direct Rate: According to home currency, direct rate is that rate in home currency which is required to buy one unit of another country’s currency.

Explanation

Using a excel spreadsheet, the dollars required to buy 1,000 units of currencies of various countries is computed as below:

Excel Spreadsheet:

Excel Workings:

b.

Summary Introduction

To identify: The percentage of gain or loss between previous rates and current rates.

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