Quincy has recently been hired by an international

Reference no: EM13381024

Quincy has recently been hired by an international investment firm that has offices in both London and New York.His boss has asked that he look into investing some of the firm's U.S.-based funds into a British company that currently sells at 80 pounds sterling(GBP) per share.Quincy's boss has limited his investable funds initially to $100,000.The current exchange rate between U.S. dollars(USD) and GBP is 2USD/1GBP.

Given the above scenario, how many shares would Quincy be able to purchase?
Calculate the different rates of return and repatriated returns in the below table:

Price Per Share (GBP)	GBP Based Return	USD Denominated Return
Price Per Share (GBP)	GBP Based Return	1.80USD/1GBP	2USD/1GBP	2.20USD/1GBP
70
80
90

Explain why the results vary so much.
How do the exchange rates vary the results more than expected here?

Reference no: EM13381024

Questions Cloud

1 the following information is available about marne : 1. the following information is available about marne company for 2010. all sales are on credit.average cash and

Question 1jarum industrial tools is considering a 3-year : question 1jarum industrial tools is considering a 3-year project to improve its production efficiency. buying a new

A firm has total assets with a market value of 1500000 it : a firm has total assets with a market value of 1500000. it has one issue of 1000 zero coupon bonds outstanding each

Provide a specific example of a company that took an action : provide a specific example of a company that took an action that might have increased short run profits but had the

Quincy has recently been hired by an international : quincy has recently been hired by an international investment firm that has offices in both london and new york.his

Firm a has 10000 in assets entirely financed in equityfirm : firm a has 10000 in assets entirely financed in equity.firm b also has 10000 in assets but these assets are financed by

Compare the financial condition of titan in the marketplace : compare the financial condition of titan in the marketplace simulation at the end of q4 and the end of q8. analyze the

1 potsdam co has 3 million shares of common stock each : 1. potsdam co has 3 million shares of common stock each selling for 30 with beta 1.7. the company has 40 million in

Gaines company recently initiated a postaudit program to : gaines company recently initiated a postaudit program. to motivate employees to take the program seriously gaines

User Account

All Pages