James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,950. The share was bought for 4,750 a year ago. The exchange rate is SF2.35 per U.S. dollar now and was SF2.08 per dollar a year ago. Mr. Silber received S a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,750, his principal investment amount ward at the forward exchange rate of SF2.37 per dollar. How would this affect the dollar rate of return on this Swiss stock estment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ate of return %
James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,950. The share was bought for 4,750 a year ago. The exchange rate is SF2.35 per U.S. dollar now and was SF2.08 per dollar a year ago. Mr. Silber received S a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,750, his principal investment amount ward at the forward exchange rate of SF2.37 per dollar. How would this affect the dollar rate of return on this Swiss stock estment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ate of return %
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter27: Multinational Financial Management
Section: Chapter Questions
Problem 9P
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