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Romiana's Returns (C). Jennie Smith is a London-based investor. She has been closely following her investment in 1,500shares of Romiana, an Italian firm that went
Romiana's Returns (C). Jennie Smith is a London-based investor. She has been closely following her investment in 1,500shares of Romiana, an Italian firm that went public in February 2012. When she purchased her 1,500 shares at 19.47 per share the euro was trading at 0.833 / . Currently, the share is trading at 25.64 per share, and the exchange rate is 0.7299/. a. If Jennie sells her shares today, what percentage change in the share price would she receive? b. What is the percentage change in the value of the euro versus the pound over this same period? c. What is the total return (in ) that Jennie would earn on her shares if she sold them at these rates? d. Jennie Smith chooses not to sell her shares at the time described above. She waits expecting the share price to rise further after the announcement of quarterly earnings. Her expectations are correct, and the share price rises to 34.65 per share after the announcement She now wishes to recalculate her returns assuming that the exchange rate is now 0.75927. WITH a. If Jennie sells her shares today, what percentage change in the share price would she receive? The change in share price is %. (Round to two decimal places.) b. What is the percentage change in the value of the euro versus the pound over this same period? The change in the value of the euro versus the pound is %. (Round to two decimal places.) c. What is the total return (in ) that Jennie would earn on her shares if she sold them at these rates? The total return that Jennie would earn on her shares is (Round to two decimal places.) d. Jennie Smith chooses not to sell her shares at the time described above. She waits, expecting the share price to rise further after the announcement of quarterly earnings. Her expectations are correct, and the share price rises to 34.65 per share after the announcement. She now wishes to recalculate her returns assuming that the exchange rate is now 0.75927. The change in share price is %. (Round to two decimal places.) The total return that Jennie would earn on her shares is (Round to two decimal places.)
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