Determine the total ending value of the investment

Assignment Help Financial Management
Reference no: EM13828760

An investor in the United States bought a one-year Brazilian security valued at 195,000 Brazilian reals. The U.S. dollar equivalent was 100,000. The Brazilian security earned 16% during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($0.51 to $0.46). After transferring the funds back to the United States, what is the investors return on his $100,000? Determine the total ending value of the Brazilian investment in Brazilian reals and then translate this Brazilian value to U.S. dollars. Then compute the return on the $100,000.

Reference no: EM13828760

Questions Cloud

An increase in consumer confidence raises consumers : Suppose that an increase in consumer confidence raises consumers' expectations about their future income and thus increases the amount they want to consume today. This might be interpreted as an upward shift in the consumption function. How does this..
Lose on this transaction assuming no hedging : You are the vice president of finance for Exploratory Resources, headquartered in Huston, Texas. In January 2010, your firm's Canadian subsidiary obtained a six-month loan of 150,000 Canadian dollars from a bank in Houston to finance the acquisition ..
Explain using managerial economics : 1. Explain, using managerial economics, why sports economists believe ticket prices are too LOW. No more than 75 words, please. You can do an excellent job with 40 - 50 words if you are concise.
Greater sense of employee commitment : As far as possible, please consider using your place of work as a case study in order to answer this question. If for whatever reason that you cannot fulfill the above requirement, please use another organization (e.g. a past workplace or one to w..
Determine the total ending value of the investment : An investor in the United States bought a one-year Brazilian security valued at 195,000 Brazilian reals. The U.S. dollar equivalent was 100,000. The Brazilian security earned 16% during the year, but the Brazilian real depreciated 5 cents against the..
Explain about two areas of training organization : As far as possible, please consider using your place of work as a case study in order to answer this question. If for whatever reason that you cannot fulfill the above requirement, please use another organization (e.g. a past workplace or one to w..
Sample testing of a new drug for pain management : Sample Testing of a New Drug for Pain Management
How many polish zlotys are equal to a pound : Suppose a Polish zloty is selling for $0.3414 and a British pound is selling for 1.4973. What is the exchange rate (cross rate) of the Polish zloty to the British pound? That is, how many Polish zlotys are equal to a pound?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the length of the days sales in inventory

Scribble, Inc. has sales of $100,000 and cost of goods sold of $75,000. The firm had a beginning inventory of $20,000 and an ending inventory of $22,000. What is the length of the days' sales in inventory?

  What is the new cost of goods sold percent of sales

What is the new cost of goods sold percent of sales for each of the countries and what are your recommendations on choice of country?

  What was the total return on this stock

Corning (a glass and ceramics maker) has a stock price of $20.30 on November 1. Suppose it pays a 25 cent dividend on November 30, and the stock price at the end of the day on November 30 is $21.75. What was the total return on this stock in November..

  Suppose the federal reserve increased deposits

Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%. What impact would the change in deposits have on the money supply?

  Change in bond price as the market yield changes

What is the Modified Duration of this bond when the market yield is at YTM and explain why and when Modified Duration under-predicts and over-predicts the change in bond price as the market yield changes.

  Actions in response to the deepening recession

The Fed took which of the following actions in response to the deepening recession in late 2008?

  Calculate the npv of the order

The Branding Iron Company sells its irons for $50 a piece wholesale. Production cost is $40 per iron. There is a 25% chance that wholesaler Q will go bankrupt within the next year. Q orders 1000 irons and asks for six months' credit. Assume that the ..

  What is projects initial cash flow for net working capital

The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepte..

  What are the main properties of indifference curve

Define Indifference Curve and what are the main properties of Indifference Curve? By using Indifference Curve analysis explain how the consumer attains maximum level of satisfaction?

  Determine the size of the equal semi-annual payment

Mr. Smith borrows $8,000 from a bank that charges interest at 6% compounded monthly. Mr. Smith has to pay the money back with six equal payments. However, the first payment is to be made immediately on receipt of the $8000. Determine the size of the ..

  What similarities exist between experiences-financial crises

What similarities exist between experiences in the United States and Ireland during the 2007-2009 financial crises

  Calculate the specific cost of each source of financing

Calculate the specific cost of each source of financing Assume that the required return of retained earnings is equal to that on common stock. If earning is available to common shareholders are expected to be $7 million what is the break point associ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd