What percentage change in the share price would receive

Assignment Help Management Theories
Reference no: EM131676423

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

Questions Cloud

Which diseases do you think is most dangerous and why : Diabetes is one of the common chronic diseases and can be very costly to our health care system. Which one do you think is the most dangerous and why?
Focuses on the cultural differences leadership : Choose a peer-reviewed article that focuses on the cultural differences leadership/management will need to handle in a global business.
Most well-known model for change that involved unfreezing : The most well-known model for change that involved unfreezing, moving, and refreezing was developed by
Discuss vo2 max for health and function in older age : Briefly discuss the implications of a decline in VO2 max for health and function in older age. Then, suggest how increasing physical activity throughout old age
What percentage change in the share price would receive : If Spencer sells his shares today, what percentage change in the share price would he receive?
Discuss the nature of the us health care system : Hospitals and other healthcare institutions, whether voluntary or for profit, need to be financially solvent to survive growing market pressures
Any variety of companies desiring their services : which is the idea that people will not work for any one employer, but instead will work on projects for any variety of companies desiring their services.
Why is strategy important for amazon : Why is strategy important for Amazon? What strategy would you advise for Amazon for Amazon HQ2?
What type of nitrogen balance is he in : on that same day his nitrogen balance test showed an output of 10 gms and and BUN of 8. What type of nitrogen balance is he in

Reviews

Write a Review

Management Theories Questions & Answers

  Differentiate the direct suit or a derivative suit

Emory B. Perry, who represents numerous shareholders, owned stock of The RAMP Corporation, a now-defunct company that developed communications technologies.

  Describe the significance of ''encourage the heart''

Describe with some detail an experience where you "encouraged the heart" of a colleague or follower in a manner described by this week''s reading.

  Should the guarantee agreement be set aside due to duress

As a result, the Haumonts signed the agreement, encumbering their previously debtfree family farm for more than $628,000. Should the guarantee agreement be set aside due to duress?

  Policy makers can learn from policy analysis

Discuss what policy makers can learn from policy analysis. Provide at least two examples to support your argument.

  Planning contingency reserves is part

You identified a technical risk in your project and assigned a contingency for that.Planning contingency reserves is part of which risk response strategy?

  Write a letter which can be used in a direct mail campaign

Write a letter of refusal which is courteous and will maintain the goodwill of those associated with the Youth Orchestra. Use the writing strategy for bad news

  Write a position paper using classical argument structure

Consult at least seven sources for your paper including at least one article from a database and one scholarly article (these can be the same article if it meets both criteria). List all sources in your references list.

  How would you alter the current pricing strategy

If you want to increase sales, how would you alter the current pricing strategy and why do you think that these changes would work

  In a large microelectronics plant

In a large microelectronics plant, the assembly cell for circuit boards has a demand for 200 units an hour. Two feeder cells supply parts A and B to the assembly cell (one A and one B for each board). Standard containers that look like divided tra..

  Create an argument for or against outsourcing

Create an argument for or against outsourcing these ports to the UAE. Be sure to detail the effect on U.S. businesses' supply chains if these ports are subjected to terrorist acts.

  How amazon illustrate the sources of service sector growth

How does Amazon.com illustrate the sources of service sector growth? - Comment on information technology, Internet as an enabler.

  Explain knowledge management behaviors

Consider the following research model that aims to explain knowledge management behaviors (knowledge collection, knowledge contribution, moderating behaviors, and knowledge utilization) in online communities of practice.

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