User Account

All Pages

What is the amount of profit in usd on this investment

Assignment Help Finance Basics
Reference no: EM131493378

Ian McKenzie, an avid international investor, just sold a share of Nestle, a Swiss firm, for SFR 5,000. The share was bought for SFR 4,000 a year ago. The exchange rate is now SFR 1.50 / USD and was SFR 1.00 / USD a year ago. Mr. McKenzie received SFR 750 as a cash dividend immediately before the share was sold. Suppose when he made the investment, Mr. McKenzi sold SFR 5,000 forward at the forward exchange rate of SFR 1.25 / USD. What is the amount of profit in USD on this investment?

Reference no: EM131493378

Questions Cloud

Using the expectations hypothesis theory : Using the expectations hypothesis theory for the term structure of interest rates,
Calculate all four terms of the dupont identity : Calculate all four terms of the DuPont identity, and present the results but do not analyze them.
How are the information-processing ideas of automaticity : How are the information-processing ideas of automaticity and metacogntive regulation reflected in the adult literacy program
Repeat the analysis of the cg stage : Repeat the analysis of the CG stage of Fig. while including channel-length modulation.
What is the amount of profit in usd on this investment : Mr. McKenzi sold SFR 5,000 forward at the forward exchange rate of SFR 1.25 / USD. What is the amount of profit in USD on this investment?
Calculate the difference in cash flow between two firms : The Rogers Corporation has a gross profit of $704,000 and $333,000 in depreciation expense. Calculate the difference in cash flow between the two firms.
Develop a quick reference section for advanced users : Develop an abstract summarizing the contents of the procedures manual.Develop a quick reference section for advanced users.
Review the corporate governance plan of the organization : Asset Misappropriation and Corporate Governance. Review the corporate governance plan of the organization you researched, evaluate the effectiveness of plan.
Operating cash flow and investment in operating capital : What is Crew Cut's operating cash flow, investment in operating capital and free cash flow for 2008, respectively in millions?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain in writing and with illustrations how a spreadsheet

explain in writing and with illustrations how a spreadsheet is a good accounting tool to perform bank

  Problem regarding the differential input resistance

ABJT differential amplifier uses a 400-μAbias current. What is the value of gm of each device? If β is 160, what is the differential input resistance?

  Computing the value of bond based on rate of returns

Computing the value of bond based on rate of returns and What two reasons cause the required return to differ from the coupon interest rate

  What is the operating income for both firms

Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in equity. What is the operating income (EBIT) for both f..

  Which will increase the total amount of interest earned on

which will increase the total amount of interest earned on an investment assuming that all interest is reinvested?

  What would happen to the confidence index

Suppose Baa-rated bonds currently yield 7.5%, while Aa-rated bonds yield 5.5%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answe..

  Calculate the net cost of the new helicopter

Calculate the cash inflows from selling the old helicopter and calculate the net cost of the new helicopter - What is the expected cash flew?

  Determine the before-tax benefit or loss of accepting

Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)

  What is the rate of development that can be managed

What is the rate of development that can be managed with inner value? If Maharaja Limited needs to accomplish a 8 percent development rate with interior value, what change must be made in the profit payout proportion, different proportions remaining..

  Operations into computer-based lacrosse games

Operations into computer-based lacrosse games

  Calculate 60 months of returns for the sampp 500 index

q1 index modelsdownload 61 months february 2009 to february 2014 of monthly data for the sampp 500 index symbol gspc.

  Computers and the latest developments in telecommunication

computers and the latest developments in telecommunication technologies have resulted in more efficient payment

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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