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please answer all four thumbs up ASAP:) Instruction 13.1 Use the information to answer the following question(s) In September 2009 a US investor chooses to
please answer all four thumbs up ASAP:)
Instruction 13.1 Use the information to answer the following question(s) In September 2009 a US investor chooses to invest $500,000 in German equity securities at a then current spot rate of 51.30/euro At the end of one year the spot rate is $135/euro Refer to Instruction 13.1. At the end of the year the investor sells his stock that now has an average price per share of 57 What is the investor's average rate of return after converting the stock back into dollars? OA.-7.24% OB. 50% OC -50% OD. - 135% Westminster Insurance Company. Westminster Insurance Company plans to sell $2,000,000 of eurocommercial paper with a 60-day maturity and discounted to yield 460% per annum What will be the immediate proceeds to Westminster Insurance? Assume a 360-day year The immediate proceeds to Westminster Insurance will be $1 (Round to the nearest cont) Morning Star Air (China). Morning Star Air, headquartered in Kunming, China, needs US$24,000,000 for one year to finance working capital The airline has two alternatives for borrowing a. Borrow US$24,000,000 in Eurodollars in London at 7.40% per annum b. Borrow HK$185,198,400 in Hong Kong at 715% per annum, and exchange these Hong Kong dollars at the present exchange rate of HK$7 7166/USS for US dollars At what ending exchange rate would Morning Star Air be indifferent between borrowing US dollars and borrowing Hong Kong dollars? Morning Star Ait would be indifferent between borrowing US dollars and borrowing Hong Kong dollars if the ending exchange rate is HKSLEUSS (Round to four decimal places) Step by Step Solution
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