Question
Q.1 (a) You loaned a Mexican business $100,000. However, the business is repaying the loan in Mexican pesos. The exchange rate was $1 = 100
Q.1 (a) You loaned a Mexican business $100,000. However, the business is repaying the loan in Mexican pesos. The exchange rate was $1 = 100 pesos on the day of the loan but had changed to $1 = 150 pesos; what happened to the value of your investment?
(b)Calculate the retained earnings of a corporation at the end of the year if retained earnings were $20,000 at the beginning of the year, net income was $50,000, declared $60,000 in dividends, and sold $50,000 in additional stock (c)You bought stock for a new internet company for $125 per share last year and paid a $0.50 dividend per share. Unfortunately, the company faces bankruptcy, and you quickly sell your shares for $115. Calculate your rate of return for this investment.
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