quired: James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,250. The share was bought for 4,680 a year ago. The exchange rate is SF2.00 per U.S. dollar now and was SF1.94 per dollar a year ago. Mr. Silber received SF136 cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,680, his principal investment amount, ward at the forward exchange rate of SF2.02 per dollar. How would this affect the dollar rate of return on this Swiss stock estment?

quired: James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,250. The share was bought for 4,680 a year ago. The exchange rate is SF2.00 per U.S. dollar now and was SF1.94 per dollar a year ago. Mr. Silber received SF136 cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,680, his principal investment amount, ward at the forward exchange rate of SF2.02 per dollar. How would this affect the dollar rate of return on this Swiss stock estment?

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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Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,350. The share was bought for SF4,690 a year ago. The exchange rate is SF2.05 per U.S. dollar now and was SF1.96 per dollar a year ago. Mr. Silber received SF138 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,690, his principal investment amount. forward at the forward exchange rate of SF2.07 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Rate of return 11.88
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