1. You purchased a share of Disney stock for $98.46. During the year you received $.86 in dividends. At the end of the year, you sold the stock for $105.50. Calculate the holding period return for this investment (excluding taxes).

2. You purchased 5 shares of Marriott stock for $205.50 per share. During the year you received $1.50 per share in dividends. At the end of the year, you sold your stock for $230.80 per share. Calculate the holding period return for her investment (excluding taxes).

3. Assume that a $1,500 bond paying 3.3% interest rate is currently selling at 105.

a. What is the current selling price of the bond?

b. How much interest will you earn in one year from a bond?

4. Assume that you are importing a car from Germany. The car price is 70,000 euros. The current exchange rate is $1 = 0.7euro. However, there is a probability that the exchange rate will move to $1 = 0.5euro three months from now. Should you import the car now or three months later? What is the price difference?

5. Assume that you are doing a business in Australia. You are forecasting a net income of $AUD 750,000. Also assume that the exchange rate has changed from $0.6=AUD$1 to $0.5=AUD$1. When you repatriate your profits to dollars, has your net income increased or decreased from the change in the exchange rate?

6. You are moving to London and purchasing a house for 200,000 pounds. The exchange rate was 0.5=$1 a week ago. Today the exchange rate has changed to 0.6=$1. Does your house cost more or less in U.S. dollars now than last week? By how much?

1. You purchased a share of Disney stock for $98.46. During the year you received $.86 in dividends. At the end of the year, you sold the stock for $105.50. Caleulate the holding period return for this investment (excluding taxes). 2. You purchased 5 shares of Marriott stock for $205.50 per share. During the year you received $1.50 per share in dividends. At the end of the year, you sold your stock for $230.80 per share. Calculate the holding period return for her investment (excluding taxes). 3. Assume that a $1,500 bond paying 3.3% interest rate is currently selling at 105 . a. What is the current selling price of the bond? b. How much interest will you earn in one year from a bond? 4. Assume that you are importing a car from Germany. The car price is 70,000 euros. The current exchange rate is $1=0.7 euro. However, there is a probability that the exchange rate will move to $1=0.5 euro three months from now. Should you import the car now or three months later? What is the price difference? 5. Assume that you are doing a business in Australia. You are forecasting a net income of SAUD 750,000. Also assume that the exchange rate has changed from $0.6=AUD$1 to $0.5=AUDS1. When you repatriate your profits to dollars, has your net income increased or decreased from the change in the exchange rate? You are moving to London and purchasing a house for 200,000 pounds. The exchange rate was 0.5=$1 week ago. Today the exchange rate has changed to 0.6=$1. Does your house cost more or less in U.S. dollars now than last week? By how much