7. Telmex dual listing and the Mexican peso devaluation (intermediate). Shares of Telefonos Mexicanos (Telmex) listed on

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7. Telmex dual listing and the Mexican peso devaluation (intermediate). Shares of Telefonos Mexicanos (Telmex) listed on the New York Stock Exchange fell from

$60 to $48 when theMexican peso (MXN) was devalued on December 19, 1994, from MXN 3.44 = US$1 to MXN 6.05 = US$1.

a. Compute the percentage depreciation of the Mexican peso.

b. As a trader for Barings Securities specializing in Mexican stocks, do you see profit opportunities? What are the risks involved?

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International Corporate Finance

ISBN: 9781119550464

2nd Edition

Authors: Laurent L. Jacque

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Question Posted: Oct 23, 2024 08:02 AM

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7. Telmex dual listing and the Mexican peso devaluation (intermediate). Shares of Telefonos Mexicanos (Telmex) listed on

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International Corporate Finance

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