Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vaniteuxs Returns (C), Spencer Grant is a New York-based investor. He has been closely following his investment in 100 shares of Vaniteux, a French firm

image text in transcribed
Vaniteux"s Returns (C), Spencer Grant is a New York-based investor. He has been closely following his investment in 100 shares of Vaniteux, a French firm that went public in February 2010 . When he parchased his 100 shares at 17.52 per share, the euro was trading at $1.3544/. Currently, the share is trading at 27.62 per share, and the dollar has fallen to $1.4028/6, Spencer considers selling his shares at this time but chooses not to sell them after all. He waits, expecting the thare price to rise further afler the announcement of quartedy earnings. His expeciations are correct, and the share price rises to 30.26 per share after thit announcement. The current spot exchange rate is $1.315/6. a. If Spencer selis his shares today, what percentage change in the share price would he receive? b. What is the percentage change in the value of the euro versus the dollar over this same period? c. What would be the total retum Spencer would earn on his shares if he sold them at these rates? d. What would be the total retum on the Vaniteux investment by Laurent Vuagnoux, a Paris-based investor? a. If Spencer sells his shares today, what percentage change in the share price would he receive? The sharehclder return is \%. (Round to two decimal places.) b. What is the percentage change in the value of the euro versus has dollar over this same period? The percentage change in the value of the euro versus the dollar is \%. (Round to two decimal places.) c. What would be the total retum Spencer would earn on his shares if he soid them at these rates? If he sold his shares today, it would yleld the following amount in euros \& (Round to two decimal places.) The saies procoeds in U.S. dollars is $ (Round to the nearest cent.) The original investment (cosf) of 100 shares in Vaniteux in euros is 6 (Round to two decirnal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Millionaire By Thirty The Quickest Path To Early Financial Independence

Authors: Douglas R. Andrew, Emron Andrew, Aaron Andrew

1st Edition

0446501840, 978-0446501842

More Books

Students also viewed these Finance questions

Question

Define validity as it refers to the construction of scales.

Answered: 1 week ago

Question

Contrast finite and infinite population sources.

Answered: 1 week ago