Benjamin is an American investor seeking to evaluate an investment opportunity in Motorola Solutions Inc. On the other side of the globe, Desmond from Singapore is also contemplating the same choice. They have access to the following information in US dollar terms: Table 2.1: Dividend Payout Schedule for Motorola Solutions Inc. Both enter an investment worth 50 shares each from their respective countries on April 15, 2019 at a per share price of $141.44 and exit the market on March 12, 2020 at a price of $145.24. Benjamin falls in the ordinary income tax-bracket of 28% while Desmonds foreign investment income is taxed at 15%. For their investment horizon the exchange rate has moved as follows: Table 2.2: Exchange Rate Movements during Investment Horizon Date Exchange Rate* April 15, 2019 SGD1.35291/$ June 13, 2019 SGD1.3669/$ September 12, 2019 SGD1.37774/$ December 12, 2019 SGD1.35719/$ March 12, 2020 $0.71628/SGD March 12,2020 $0.70514/SGD * SGD: Singapore Dollar Question 1 Compute the before-tax HPR and IRR for Benjamin based on USD earnings. Question 2 Compute the afer-tax HPR and IRR for Benjamin based on USD earnings page 5 Question 3 Repeat the exercises in Questions 1 and 2 above for Desmond in terms of Singapore Dollars. Question 4 Do both investors earn the same HPR and IRR? Explain the role of exchange rates and FOREX risk in this context. Who faces this risk? Is the risk worth it in this scenario? If the HPR and IRR are different for both investors, can you deduce the rate at which the USD may have appreciated/depreciated over the investment horizon?