1-

Spencer Grant and Vaniteux (A). Spencer Grant is a New York-based investor. He has been closely following his investment in

200

shares of Vaniteux, a French firm that went public in February 2010. When he purchased his

200

shares at

18.02

per share, the euro was trading at

$1.353/.

Currently, the share is trading at

27.58

per share, and the dollar has fallen to

$1.4248/.

a. If Spencer sells his shares today, what percentage change in the share price would he receive?

b. What is the percentage change in the value of the euro versus the dollar over this same period?

c. What would be the total return Spencer would earn on his shares if he sold them at these rates?

a. If Spencer sells his shares today, what percentage change in the share price would he receive?

The shareholder return is

nothing%.

(Round to two decimal places.)

2-

Lantau Beer (B): Japanese Yen Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a long-term loan

agreement several years ago. The company's new CFO believes, however, that what was originally thought to have

been relatively "cheap debt" is no longer true. What do you think?(Click on the

icon to import the table into a spreadsheet.)

	2010	2011	2012
Annual yen payments on debt agreement ()	12,900,000	12,900,000	12,900,000
Average exchange rate, /HK$	11.95	11.69	11.54
Annual yen debt service, HK$

Calculate the necessary variables for the analysis below:(Round to the nearest integer.)

Analysis of Japanese yen-Denominated Debt	2010
Annual yen payments on debt agreement ()	12,900,000
Average exchange rate, /HK$	11.95
Annual yen debt service, HK$