What percentage change in the share price would receive

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Question: Vaniteux's Returns (C). Using the same prices and exchange rates as in Problem II, Vaniteux (B), what would be the total return on the Vaniteux investment by Laurent Vuagnoux, a Paris-based investor?

Problem II: Vaniteux's Returns (B). Spencer Grant chooses not to sell his shares at the time described in Problem I. He waits, expecting the share price to rise further after the announcement of quarterly earnings. His expectations are correct, and the share price rises to €31.14 per share after the announcement. He now wishes to recalculate his returns. The current spot exchange rate is $1.3110/€.

Problem I: Vaniteux's Returns (A). Spencer Grant is a New York-based investor. He has been closely following his investment in 100 shares of Vaniteux, a French firm that went public in February 2010. When he purchased his 100 shares at €17.25 per share, the euro was trading at $1.360/€. Currently, the share is trading at €28.33 per share, and the dollar has fallen to $1.4170/€.

a. If Spencer sells his shares today, what percentage change in the share price would he receive?

b. What is the percentage change in the value of the euro versus the dollar over this same period?

c. What would be the total return Spencer would earn on his shares if he sold them at these rates?

Reference no: EM131676423

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