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.

Q: Suppose that annual income from a rental property is expected to start at​$1,100 per year and…

A: Given that; Annual income from the rental property is expected to start at $1,100 per year and…

Q: You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon…

A: In this problem, we are given the following variables:P (Present Value): This is the price you paid…

Q: You are setting up a continuous annuity trust fund. Money is continuously transferred from your…

A: Annual Deposits made for trust fund = 1000 A (0 ) : Implies present value at for 0 years . Interest…

Q: A college freshman borrowed P5,000 from a bank for his tuition fee and promised to pay the amount…

A: Given information: Borrowed amount = P5000 The amount received after interest deducted = P4745

Q: A US investor sees an arbitrage opportunity in the currency markets. The spot exchange rate between…

A: The problem involves an arbitrage opportunity in the currency markets. The spot exchange rate…

Q: The monetary (currency) unit of another country, A, has a present exchange rate of 10.7 units per…

A: The Present rate of exchange is 1 Unit of currency A = 10.70 US Dollars Case (A) Devaluation of…

Q: For the year ending December 31, 2017, sales for Company Y were $61.21 billion. Beginning January 1,…

A: To calculate the amount of money in the investment account on December 31, 2020, we need to…

Q: On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corporate…

A: Given; Initial price of stock= $21.5 Number of shares purchased= 10 Dividend received= $0.25 Due to…

Q: You, as the head of the derivatives division in an Investment bank, are trying to price a 6-month…

A: The present value of floating payments at the inception of the swap is 6 million ≤PV<7.5 million…

Q: An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the…

A: Given: Yearly payments = $5000 (from EOY 1 to ∞)Interest rate = 4.07% per year

Q: The German Federal Government Bond has the following yields according to maturity: 1yr: -0.435 2yr:…

A: Given information Yield rate on German federal government Bond  Yield rate on United states of…

Q: Problem 1:: To accumulate a fund of P 80,000 at the end of 10 years, a man will make equal annual…

A: In economics, present value refers to the current value of a future cash flow. Future value is the…

Q: XYZ corporation has budgeted P300,000 per year to pay for labor over the next five years. If the…

A: Given that, Per year Amount , (A') = $300,000 Time period, (n) = 5years Labor each year Increase in…

Q: 10-year government coupon bond has a face value of $1,000 and a coupon rate of 5% paid annually.…

A: Time = 10 years Face value = 1000 $ Coupon rate = 5% or 50 $ annually Current rate = 6 %  annually…

Q: Find the present value of a loan on December 4, 2010 if the maturity value on October 4, 2011 is PHP…

A: Given future worth of loan = 420000 Interest rate = 9 % Monthly rate = 9 % / 12 = 0.75 % Time = 10…

Q: Michael is 24 years old and has a 401(k)

A: ANSWER STEP-1 Invetsment Weights Return Standard deviation A 50% 6.63% 13.46% B 25% 9.89%…

Q: To secure a return of 4%, at what price should a bond be purchased if it is redeemable at P 1,000 in…

A: So, to secure the return of 4%, at what price should a bond be purchased if it is redeemable at P…

Q: Compute how much a business is worth if it is expected to generate cash flows to its owners of $0…

A: A financial statistic known as present value determines the current worth of future cash flows once…

Q: Calculate and disclose the purchase/sale exchange rate between the two currencies as £/SF by the…

A: The exchange rate exhibits the relative price of currency exchanged from one country to another…

Q: QUESTION: Can you decide whether to invest after these analyses? If not, what to do next?

A: If money is invested in money market  then to calculate the return on $190000 ( as this is the…

Q: 24) At a return rate of 20% per year, the amount of money you must deposit for five consecutive…

A: Given: The amount of future value (FV) = $50,000 The rate of return is = 20% Number of years = 15…

Q: A plain vanilla interest rate swap is written on a notional principal of €100m. The swap pays 3.6%…

A: The net amount received by the party paying floating rate after 4months: = 100million euro * 3.6/2 -…

Q: The current price of a non-dividend-paying stock is £39.0. Over the next year it is expected to rise…

A: The risk-free rate represents the interest an investor would expect from an absolutely risk-free…

Q: What is the annual rate of interest (in %) if P275 is earned in 10 months on an investment of…

A:

Q: Function is : Qs= 89830 -40Ps +20Px+15Py+2I+.001A+10W   What is the numerical value of the partial…

A:

Q: Fatma is quoted a nominal interest rate of 9.15% per annum compounded every four months on her…

A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. The two…

Q: Suppose the annualized interest rate on 180-day Russian Ruble deposits is 4.3125 (bid) - 4.4375…

A: A forward rate is an interest rate applicable to a financial transaction that will take place in the…

Q: On 26 May 2021 it cost $1.41 (USD) to buy one British Pound, while the 10-year British Government…

A: Exchange Rate refers to the value of another currency that a unit of currency can be converted into.…

Q: it costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can…

A: Cost = 30,000sell 20,000 gallons per monthr = 1%

Q: At the start of May, you purchased some shares in Apple (a US company) for $US 43.87, and hedged…

A: Shares are a type of financial instrument that represents the equity ownership in a business firm or…

Q: hat interest rate compounded monthly is equivalent to 10% effective rate? I have clarifications…

A: I guess you are confused about the compounding part so For Your Reference, I'm solving both so that…

Q: The total amount of money in an account with P dollars invested in it is given by the formula…

A: Given: P = $552 r = 9% or 0.09 t = 21 months or 21/12years

Q: Consider the following open economy model of the exchange rate and price (in logarithms) e…

A: Given,

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

A: A single amount/lump sum amount is characterized as a solitary total amount of cash. A single amount…

Q: Manitowac Crane is a US company that exports heavy crane equipment to several Chinese dock…

A: Currency refers to a type of system of money that in an nation at a point of time. It can be used in…

Q: Pfizer, an American multinational pharmaceutical and biotechnology corporation just signed a…

A: A volatile exchange rate is one that fluctuates frequently and unpredictably. In this case, the…

Q: Suppose you have an opportunity to invest in a fund that pays 11% interest compounded annually.…

A: Step 1: The remaining amount can be found as follows: Sl. No.ABCDEFGHI1Investment        5,000.00…

Q: Globo-Chem Co. is expected to generate a free cash flow (FCF) of S8,385.00 million this year (FCF, =…

A: The weighted average cost of capital is the rate that a company is expected to pay on average to all…

Q: If your goal was to have the largest amount of money in your bank account in two years, which of the…

A: The individual has to invest a certain amount for a period of two, which of the following will give…

Q: our U.S. firm made a euro denominated investment three months ago.  The investment is maturing today…

A: The exchange rate refers to the stating the currency of one nation in terms of another nation's…

Q: Suppose that a company needs new equipment, and that the machinery in question earns the company…

A: Present value is the current value of the upcoming cash, accessible at a discount rate of interest.…