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George Robbins considers himself an aggressive investor He's thinking about investing in some foreign securities and is looking at stocks in (1) Bayer AG, the

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George Robbins considers himself an aggressive investor He's thinking about investing in some foreign securities and is looking at stocks in (1) Bayer AG, the big German chemical and health-care firm, and (2) Swisscom AG, the Swiss telecommunications company Bayer AG, which trades on the Frankfurt Exchange is currently priced at 53.23 euros (E) per share. It pays annual dividends of 1 69 euro per share. Robbins expects the stock to climb to 6105 euro por share over the next 12 months. The current exchange rate is 0.9143 /US. $, but that's expected to rise to 1.0106 /US $. The other company, Swisscom, trades on the Zurich Exchange and is currently priced at 66 52 Swiss francs (S) per share. The stock pays annual dividends of 1.16 St per share its share price is expected to go up to 69.88 SF within a year. At current exchange rates, 1 Sf is worth $0.7014 US, but that's expected to go to 50 7921 by the end of the 1-year holding period a. Ignoring the currency effect, which of the two stocks promises the higher total return (in its local currency)? Based on this information which of the two stocks looks like the better investment? b. Which of the two shacks has the better total return w US dolore Did currency exchange rates affect their returns in any way? Do you still want to stick with the same stock you selected in parta? Explain a. Ignoring the currency effect the holding period return for Bayer AG is 1% (Round to two decimal places) Igroting the currency effect the holding period return for Swisscom AG Round to two decimal places) Ignoring the currency effect which of the two stocks promises the higher total return on its local currency Based on this information, which of the two stocks looks like the better investment? Select the best choice below Sisscom AG promises the higher total return Based on total returns in foreign currency for Swisscom AG is the better investment Choco Solo YOU WORD b. Which of the two stocks has the better total return in U.S. dollars Uld same stock you selected in part a? Explain Swisscom AG promises the higher total return Based on total returns in foreign currency form, Swisscom AG is the better investment. Bayer AG promises the higher total return Based on total returns in foreign currency form, Bayer AG is the better investment Bayer AG promises the higher total return. Based on total returns in foreign currency form, Swisscom AG is the better investment Swisscom AG promises the higher total return. Based on total returns in foreign currency form. Bayer AG is the better investment b. The total return in US dollars for Bayer AG is II% (Round to two decimal places) b. Which of the two stocks has the better total return in US dollars UlU same stock you selected in part a? Explain b. The total return in U.S. dollars for Bayer AG is 3% (Round to two decimal places.) The total return in US dollars for Swisscom AG is % (Round to two decimal places) Which of the two stocks has the better total return in US dollars? (Select the best choice below) O Bayer AG O Swisscom AG like the b. Which of the two stocks has the better total return in U.S. dollars U same stock you selected in part a? Explain. Did currency exchange rates affect their returns in any way? (Select the best choice below.) O A Exchange rates yielded a higher total return on Bayer AG because the dollar depreciated relative to the Swiss franc OB. Exchange rates yielded a higher total return on Swisscom AG because the dollar depreciated relative to the Swiss franc O C. Exchange rates yielded a higher total return on Swisscom AG because the dollar appreciated relative to the Swiss franc OD. Exchange rates yielded a higher total return on Bayer AG because the dollar appreciated relative to the Swiss franc OD. Exchange rates yielded a higher total return on Bayer AG because the dollar appreciated relative to the Swiss franc. Do you still want to stick with the same stock you selected in part a? Explain (Select the best choice below) O A. Excharige rates worked for the Bayer AG investment because the higher retums (in local currency) were offset by an appreciation of the dollar relative to the euro. Select the stock issued by Bayer AG OB. Exchange rates worked against the Bayer AG investment because the higher returns (in local currency) were complemented by a depreciation of the door relative to the euro. Select the stock issued by Swisscom Click to select your answers) George Robbins considers himself an aggressive investor He's thinking about investing in some foreign securities and is looking at stocks in (1) Bayer AG, the big German chemical and health-care firm, and (2) Swisscom AG, the Swiss telecommunications company Bayer AG, which trades on the Frankfurt Exchange is currently priced at 53.23 euros (E) per share. It pays annual dividends of 1 69 euro per share. Robbins expects the stock to climb to 6105 euro por share over the next 12 months. The current exchange rate is 0.9143 /US. $, but that's expected to rise to 1.0106 /US $. The other company, Swisscom, trades on the Zurich Exchange and is currently priced at 66 52 Swiss francs (S) per share. The stock pays annual dividends of 1.16 St per share its share price is expected to go up to 69.88 SF within a year. At current exchange rates, 1 Sf is worth $0.7014 US, but that's expected to go to 50 7921 by the end of the 1-year holding period a. Ignoring the currency effect, which of the two stocks promises the higher total return (in its local currency)? Based on this information which of the two stocks looks like the better investment? b. Which of the two shacks has the better total return w US dolore Did currency exchange rates affect their returns in any way? Do you still want to stick with the same stock you selected in parta? Explain a. Ignoring the currency effect the holding period return for Bayer AG is 1% (Round to two decimal places) Igroting the currency effect the holding period return for Swisscom AG Round to two decimal places) Ignoring the currency effect which of the two stocks promises the higher total return on its local currency Based on this information, which of the two stocks looks like the better investment? Select the best choice below Sisscom AG promises the higher total return Based on total returns in foreign currency for Swisscom AG is the better investment Choco Solo YOU WORD b. Which of the two stocks has the better total return in U.S. dollars Uld same stock you selected in part a? Explain Swisscom AG promises the higher total return Based on total returns in foreign currency form, Swisscom AG is the better investment. Bayer AG promises the higher total return Based on total returns in foreign currency form, Bayer AG is the better investment Bayer AG promises the higher total return. Based on total returns in foreign currency form, Swisscom AG is the better investment Swisscom AG promises the higher total return. Based on total returns in foreign currency form. Bayer AG is the better investment b. The total return in US dollars for Bayer AG is II% (Round to two decimal places) b. Which of the two stocks has the better total return in US dollars UlU same stock you selected in part a? Explain b. The total return in U.S. dollars for Bayer AG is 3% (Round to two decimal places.) The total return in US dollars for Swisscom AG is % (Round to two decimal places) Which of the two stocks has the better total return in US dollars? (Select the best choice below) O Bayer AG O Swisscom AG like the b. Which of the two stocks has the better total return in U.S. dollars U same stock you selected in part a? Explain. Did currency exchange rates affect their returns in any way? (Select the best choice below.) O A Exchange rates yielded a higher total return on Bayer AG because the dollar depreciated relative to the Swiss franc OB. Exchange rates yielded a higher total return on Swisscom AG because the dollar depreciated relative to the Swiss franc O C. Exchange rates yielded a higher total return on Swisscom AG because the dollar appreciated relative to the Swiss franc OD. Exchange rates yielded a higher total return on Bayer AG because the dollar appreciated relative to the Swiss franc OD. Exchange rates yielded a higher total return on Bayer AG because the dollar appreciated relative to the Swiss franc. Do you still want to stick with the same stock you selected in part a? Explain (Select the best choice below) O A. Excharige rates worked for the Bayer AG investment because the higher retums (in local currency) were offset by an appreciation of the dollar relative to the euro. Select the stock issued by Bayer AG OB. Exchange rates worked against the Bayer AG investment because the higher returns (in local currency) were complemented by a depreciation of the door relative to the euro. Select the stock issued by Swisscom Click to select your answers)

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