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Bio Tron Medical, Inc. Brent Bush, CFO of a medical device distributor, Bio Tron Medical, Inc., was approached by a Japa
Posted: Wed Apr 06, 2022 9:12 am
by answerhappygod
- Bio Tron Medical Inc Brent Bush Cfo Of A Medical Device Distributor Bio Tron Medical Inc Was Approached By A Japa 1 (76.53 KiB) Viewed 44 times
Bio Tron Medical, Inc. Brent Bush, CFO of a medical device distributor, Bio Tron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of ¥11,100,000 every other month if it were given a 3.8% discount. Numata's current terms are 30 days with no discounts. Using the quotes and estimated cost of capital for Bio Tron Medical in the popup window, B , Bush will compare the proposal with covering yen payments with forward contracts. Should Brent Bush accept Numata's proposal? Assume a 360-day financial year. How much in U.S. dollars will Bio Tron Medical receive with the discount? $(Round to the nearest cent.)
Spot rate: ¥110.04/$ 30-day forward rate: ¥108.64/$ 90-day forward rate: ¥107.44/$ 180-day forward rate: \106.04/$ Numata's WACC 8.74% Bio Tron's WACC 9.39% Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet.