Investor rate of return in us terms

Assignment Help Financial Management
Reference no: EM131611283

An investor in the United States bought a one-year Brazilian security valued at 360,000 Brazilian reals (R$). The U.S. dollar equivalent was $310,000. The Brazilian security earned 14 percent during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($.86 to $.81).

After transferring the funds back to the United States, what was the investor’s return on her $310,000? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Investor's rate of return in U.S. terms

Reference no: EM131611283

Questions Cloud

What is the IRR of the better project : A company is analyzing two mutually exclusive projects, The company's WACC is 10.0%. What is the IRR of the better project?
What are earnings before interest and taxes under best-case : What are the earnings before interest and taxes under the best-case scenario?
What is the implied price per share of this funding round : What is the implied price per share of this funding round? What will the value of the whole firm be after this investment (the post-money valuation)?
What is net present value of the project : A project has an initial cost of $480,000, projected cash inflows of $311,500, cash costs of $214,650, What is the net present value of the project?
Investor rate of return in us terms : After transferring the funds back to the United States, what was the investor’s return on her $310,000?
What is the exchange rate of polish zloty to british pound : 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 British pound?
Term structure of interest rates-forward contracts-futures : What are the positive and negative aspects that come with the Term Structure of Interest rates, Forward Contracts, and Futures?
The capital asset pricing model approach to equity valuation : Which one of the following statements related to the capital asset pricing model approach to equity valuation is correct?
Determine manually and by trial and error-ball-park method : Determine manually, by trial and error, Lucinda’s rate of return, if she owns the house for 6 months.Show the manual calculations, including ball-park method.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the companys weighted average cost of capital

Dobson Dairies has a capital structure, which consists of 60 percent long-term debt and 40 percent common stock. Assume the firm will be able to use retained earnings to fund the equity portion of its capital budget. What is the company’s weighted av..

  Futures contracts on gold are based

Futures contracts on gold are based on 100 troy ounces and priced in dollars per troy ounce. Assume the January gold contract settled today (in December) at 1285.10 and opened at 1284.60. The April contract settled at 1285.30 and opened at 1285. You ..

  Annual salary will be left-perpetuity investment

Alex Rodriguez recently signed a contract with the Texas Rangers that will pay him approximately 250 million dollars over the next 10 years. In this problem, assume that he will receive his pay annually in 25 million dollar installments, and that he ..

  Calculate the monthly payment required on a mortgage

Calculate the monthly payment required on a mortgage with the following characteristics: (a) Loan Value: $325,000, (b) Interest Rate: 4.25%, and (c) Years: 30.

  What is the fair present value of limited brandss stock

Financial analysts forecast Limited Brands (LTD) growth for the future to be 13.8 percent. LTD’s most recent dividend was $2.40. What is the fair present value of Limited Brands’s stock if the required rate of return is 16.5 percent?

  What is happening in the markets today

Relate your thoughts to the fundamental "valuation" concepts discussed in the readings for bonds and stocks.

  Value lodges owns an economy motel chain

Value Lodges owns an economy motel chain and is considering building a new 200-unit motel.

  What is the value of levered equity

Relay Inc. keeps a constant debt to equity ratio policy equal to 0.8 and its wacc is 13%. The company has an expected net income equal to $12,054,021 for next year and its assets are completely depreciated. If the corporate tax rate is 34%o what is t..

  Legitimate areas of community benefit

The Catholic healthcare association recognizes which of the following as legitimate areas of community benefit?

  What rate would legally have to be quoted

A local finance company quotes an interest rate of 18.5 percent on one-year loans. So, if you borrow $41,000, the interest for the year will be $7,585. What rate would legally have to be quoted? What is the effective annual rate?

  Common stock value—constant growth

Common stock value—Constant growth

  Principal-interest to be paid in equal monthly installments

A poorly educated and elderly person at home is approached by a door-to-door sales representative who convinces the person to purchase a freezer that incompletely full of meat products for $3,000 on credit, at a 100 percent interest rate, with princi..

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