What will be total percentage return to peruvian investor

Assignment Help Finance Basics

Reference no: EM132032285

Question: A Peruvian investor buys 160 shares of a U.S. stock for $6, 720 ($42 per share). Over the course of a year, the stock goes up by $4 per share.

a. If there is a 10 percent gain in the value of the dollar versus the Peruvian nuevo sol, what will be the total percentage return to the Peruvian Investor? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. Now assume that the stock increases by $8, but that the dollar decreases by 10 percent versus the Peruvian nuevo sol. What will be the total percentage return to the Peruvian investor? Use .90 in place of 1.10 in this case. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM132032285

Questions Cloud

What is the projected net present value of this project : ABC firm has a capital structure which is based on 60% common stock, 10% preferred stock and 30% debt. What is the projected net present value of this project?

Create a disaster plan for the selected building : Evaluate the existing protection services and security programs and possible corrective measures.Create a disaster plan for the selected building .

Why should you be concerned with retirement and estate : Personal Finance: Why should you be concerned with retirement and estate? How can you estimate how much you need to save for retirement?

How much will you pay in interest in your first payment : How much does your first payment reduce the principal? How much will you pay in interest in your first payment?

What will be total percentage return to peruvian investor : Now assume that the stock increases by $8, but that the dollar decreases by 10 percent versus the Peruvian nuevo sol. What will be the total percentage return.

Calculate the price of the bond : Calculate the price of the bond. The required return on equity is 12%. How many ordinary shares would DLL have to issue?

How do exchange rates affect international financial : How do exchange rates affect international financial management decisions?

Describe industrial espionage techniques : Describe industrial espionage techniques, and how gaining an understanding of these techniques can be used to mitigate risk.

Identify all the lazy dollars in your financial life : Part I: Identify all the lazy dollars in your financial life. Identify source, amount and what action might be indicated.

User Account

All Pages