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Problem 25-3 Suppose a U.S. investor wishes to invest in a British firm currently selling for 33 per share. The investor has $66,000 to invest,
Problem 25-3 Suppose a U.S. investor wishes to invest in a British firm currently selling for 33 per share. The investor has $66,000 to invest, and the current exchange rate is $2/. a. How many shares can the investor purchase? (Round your answer to the nearest whole number.) Number of shares b. Fill in the table below for rates of return after one year in each of the nine scenarios (three possible share prices denominated in pounds times three possible exchange rates). (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign.) Price per Share () Pound-Denominated Return (%) Dollar-Denominated Return (%) for Year-End Exchange Rate $1.60/ $2.00/ $2.40/ % % % % % 31 % 36 % 41 % % % %
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