In 1803, the U.S. doubled in size with the Louisiana Purchase. That well-known real estate mogul Napoleon Bonaparte sold us 827,000 square miles (529,280,000 acres–there are 640 acres in a square mile). We paid $15 million. Assume that part of the US is worth an average of $7,500 per acre in 2024. What is the annual rate of return of this purchase for the U.S.?

In 1803, the U.S. doubled in size with the Louisiana Purchase. That well-known real estate mogul Napoleon Bonaparte sold us 827,000 square miles (529,280,000 acres–there are 640 acres in a square mile). We paid $15 million. Assume that part of the US is worth an average of $7,500 per acre in 2024. What is the annual rate of return of this purchase for the U.S.?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 2BIC

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In 1803, the U.S. doubled in size with the Louisiana Purchase. That well-known real estate mogul Napoleon Bonaparte sold us 827,000 square miles (529,280,000 acres–there are 640 acres in a square mile). We paid $15 million. Assume that part of the US is worth an average of $7,500 per acre in 2020. What is the annual rate of return of this purchase for the U.S.?
Please show all steps in Exceland please explain al steps. In1803, the U. S. doubled in sizewith the Louisiana Purchase.That well - known real estatemogul Napoleon Bonaparte soldus 827, 000 square miles(529, 280, 000 acres-there are640 acres in a square mile). Wepaid $15 million. Assume thatpart of the US is worth anaverage of $7, 500 per acre in2024. What is the annual rate ofreturn of this purchase for the U.S. ?
The United States purchased Alaska from the Russian Empire approximately 150 years ago for $7.2 million. Using an annual rate of 4%, approximately what is the equivalent dollar amount today?
Suppose that you hold a piece of land in the city of London that you may want to sell in one year. As a U.S. resident, you are concerned with the dollar value of the land. Assume that if the British economy booms in the future, the land will be worth £2,000, and one British pound will be worth $3.20. If the British economy slows down, on the other hand, the land will be worth less, say, £1,500, but the pound will be stronger, say, $3.30/£. You feel that the British economy will experience a boom with a 60 percent probability and a slowdown with a 40 percent probability. a. Estimate your exposure (b) to the exchange risk. (Negative amount should be indicated by a minus sign.) Exposure b. Compute the variance of the dollar value of your property that is attributable to exchange rate uncertainty. Variance
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JC.. Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, we are concerned with the dollar value of the land. Assume that, if the British economy booms in the future, the land will be worth £4,600 and one British pound will be worth $1.54. If the British economy slows down, on the other hand, the land will be worth more, i.e., £5,700, but the pound will be weaker, i.e., $1.32/£. You feel that the British economy will experience a boom with a 55% probability and a slow-down with a 45% probability. Given the above facts, please estimate your exposure b to the exchange risk. £47,916.00 £2,000.00 £7,282.00 £5,235.00 Same facts as above: compute the variance of the dollar value of your property that is attributable to the exchange rate uncertainty (that is, please compute the value of B2Var(S). $7,282.00 $2,000.00 $14,441.00 $47,916.00
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Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, you are concerned with the dollar value of the land. Assume that, if the British economy booms in the future, the land will be worth £18 and one British pound will be worth $1.25. If the British economy slows down, on the other hand, the land will be worth less, i.e., £23 million, but the pound will be stronger, i.e., $1.37/£. You feel that the British economy will experience a boom with a 60% probability and a slow-down with the remaining probability. Estimate the Covariance between P and S (X.XXXX)
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