Mr. David Smart just sold 100 shares of Nestlé, a Swiss firm, for SF5,080 per share. The shares were bought for SF4,600 per share a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.78 per dollar a year ago. Mr. Smart received SF120 as a cash dividend per share immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars and show your detailed calculations.
Mr. David Smart just sold 100 shares of Nestlé, a Swiss firm, for SF5,080 per share. The shares were bought for SF4,600 per share a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.78 per dollar a year ago. Mr. Smart received SF120 as a cash dividend per share immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars and show your detailed calculations.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mr. David Smart just sold 100 shares of Nestlé, a Swiss firm, for SF5,080 per share. The shares were bought for SF4,600 per share a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.78 per dollar a year ago. Mr. Smart received SF120 as a cash dividend per share immediately before the share was sold. Compute the rate of
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