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Three-month forward quotes also reflect dollar depreciation from 124.865 to106.33 or 3.16% per month.
• Technical chart indicates dollar depreciation.
III. Relevant Assumptions
• Management policy to grow aggressively using retained earnings.
• Tiffany sales: one percent of $20 billion Japanese jewelry market or approximately $200 million
• Zero growth assumption due to restructuring and Japanese perception of management.
• Purchase of inventory from Mitsukoshi through Tiffany-Japan, therefore, in yen and no currency risk.
• Net profit margin of six percent. This is arrived from reviewing the past trend of selected ratios in Exhibit 3...
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