What will be total percentage return to peruvian investor

Assignment Help Financial Management
Reference no: EM131558852

A Peruvian investor buys 120 shares of a U.S. stock for $6,000 ($50 per share). Over the course of a year, the stock goes up by $8 per share.

a. If there is a 10 percent gain in the value of the dollar versus the Peruvian nuevo sol, what will be the total percentage return to the Peruvian investor? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. Now assume that the stock increases by $9, but that the dollar decreases by 10 percent versus the Peruvian nuevo sol. What will be the total percentage return to the Peruvian investor? Use .90 in place of 1.10 in this case. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131558852

Questions Cloud

Forced to compete exclusively on price : A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price.
The yield to maturity for two-year bond if held to maturity : Based on the above information, what is the yield to maturity for the two-year bond if held to maturity?
The offer price would need to drop to ?dollar nothing : Your firm is selling 10 million shares in an IPO. You are targeting an offer price of $ $18.09 per share. The offer price would need to drop to ?$ nothing.
Optimal capital structure consists and common equity : Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 40%.
What will be total percentage return to peruvian investor : If there is a 10 percent gain in the value of the dollar versus the Peruvian nuevo sol, what will be the total percentage return to the Peruvian investor?
Initial investment and initial investment : How do you know which Profitability formula to use and when ? Is it NPV/ Initial investment) *100 or NPV + Initial investment/ Initial investment?
After transferring funds back-what was the investor return : After transferring the funds back to the United States, what was the investor’s return on her $260,000?
Expected return of the overall market based : What is the expected return of the overal market based on this information?
Capm and required return : After all of these changes, what will be the difference in the required returns for HRI and LRI?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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