In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.25/euro. At the end of one year the spot rate is$1.20/euro.

Problem 40 Refer to the information in Case

1. How many euros will the U.S. investor acquire with his initial $500,000 investment?

Answer is 400,000, I want to know how it is 400,000??

2. At an average price of e50/share, how many shares of stock will the investor be able to purchase?

Answer is 8000 shares. How did we get 8000? solution please.