An investor residing in Spain bought shares of a U.S. company last year at $10.42 per share when the exchange rate was $1.11 per euro. The investor just received a dividend payment of $2 and is considering selling its investment at a price of $12.50 per share when the exchange rate is $1.07 per euro. Answer the following two questions:

1) What would be the rate of return in euro terms if the investor sold her shares today?

2) What are the two sources or components of the return for the investor (that is, the foreign return, and the currency gain or loss)? Give numerical answers.