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Mr . James K . Silber, an avid international investor, just sold a share of Nestl , a Swiss firm, for SF 4 , 9

Mr. James K. Silber, an avid international investor, just sold a share of Nestl, a Swiss firm, for SF4,990. The share was bought for SF3,700 a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.96 per dollar a year ago. Mr. Silber received SF210.00 as a cash dividend immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars. Rate of return formula is Ri$=(1+Ri)+(1+ei)-1

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