International investment returns Personal Finance Problem Joe Martinez, a U.S. citizen living in Brownsville, Texas, invested in the common stock of Telmex, a Mexican corporation. He purchased 1,000 shares at 23.00 pesos per share. Twelve months later, he sold them at 27.75 pesos per share. He received no dividends during that time. a. What was Joe's investment return (in percentage terms) for the year, on the basis of the peso value of the shares? b. The exchange rate for pesos was 13.57 pesos per US$1.00 at the time of the purchase. At the time of the sale, the exchange rate was 14.16 pesos per US$1.00. Translate the purchase and sale prices into US$. c. Calculate Joe's investment return on the basis of the US$ value of the shares. d. Explain why the two returns are different. Which one is more important to Joe? Why? a. Joe's investment return (in percentage terms) for the year, on the basis of the peso value of the shares is %. (Round to two decimal places.) b. The purchase price per share in US$ is $. (Round to three decimal places.) The sales price per share in US$ is $ (Round to three decimal places.) c. Joe's investment return on the basis of the US$ value of the shares is %. (Round to two decimal places.)

International investment returns Personal Finance Problem Joe Martinez, a U.S. citizen living in Brownsville, Texas, invested in the common stock of Telmex, a Mexican corporation. He purchased 1,000 shares at 23.00 pesos per share. Twelve months later, he sold them at 27.75 pesos per share. He received no dividends during that time. a. What was Joe's investment return (in percentage terms) for the year, on the basis of the peso value of the shares? b. The exchange rate for pesos was 13.57 pesos per US$1.00 at the time of the purchase. At the time of the sale, the exchange rate was 14.16 pesos per US$1.00. Translate the purchase and sale prices into US$. c. Calculate Joe's investment return on the basis of the US$ value of the shares. d. Explain why the two returns are different. Which one is more important to Joe? Why? a. Joe's investment return (in percentage terms) for the year, on the basis of the peso value of the shares is %. (Round to two decimal places.) b. The purchase price per share in US$ is $. (Round to three decimal places.) The sales price per share in US$ is $ (Round to three decimal places.) c. Joe's investment return on the basis of the US$ value of the shares is %. (Round to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 9 Two years ago, Donald invested $1,560.00. He has earned and will earn compound interest of 8.76 percent per year. If Virginia invests $1,640.00 in 1 year from today and earns simple interest, then how much simple interest per year must Virginia earn to have the same amount of money in 6 years from today as Donald will have in 6 years from today? Answer as an annual rate. O A rate equal to or greater than 38.20% but less than 58.20% O A rate less than 17.73% or a rate greater than 60.11% O A rate equal to or greater than 18.69% but less than 38.20% O A rate equal to or greater than 17.73% but less than 18.69% O A rate equal to or greater than 58.20% but less than 60.11%
MATHEMATICS OF FINANCE QUESTION John deposits RM10,000 at the beginning of each year for ten years, into a financial instrument offering dividend rate of 10% per year. He then withdraws annualized level payments of P starting at the beginning of eleventh year and continuing for 15 years later, at dividend rate of 5% per year. At the end of 25 years, the fund balance remains zero. a. Calculate the present value of the annualized deposits he makes. b. Calculate the annualized level payment of withdraw, P. c. Determine the balance of the fund at the end of 15 years starting from the year he makes his first deposit, just before the next sixth withdraw is being made
Please answer quickly and correctly
Question 1: 1.On your birthday, your uncle gave you the money in his savings account. His only deposit was Rs.10,000 made 50 years ago. The savings account paid 8% compounded annually. How much money is in the account today? 2. A loaf of bread costs Rs.2.40 today. If its price increases by 6% per year, how much will an equivalent loaf cost in 20 years? 3.A stock has paid dividends regularly for the last 20 years, starting with Rs.1.50 in 1964 and rising to Rs.4 in 1984. If these dividends have been growing at a constant rate, what has that rate been for the last 20 years? 4.If the discount rate is 12%, what is PV10 of Rs.3,000 received at the end of each of the next 10 years except for the fourth year?
question attached
DRAW CASH FLOW DIAGRAM AND WRITE SOLUTION Ashley purchased a common stock worth $5,000 every year (starting in year 1) for a period of 10 years. At the end of the 10th year, she sold all her stocks to a buyer for $80,000. Find the rate of return received on the investment.
Km. 207
Inflation Laureen Mauer's salary a year ago was $51,000. If inflation during the year was 3 percent in Tampa where she lives, how much of a decline in her purchasing power occurred? Enter the dollar answer as a positive value. Round your answer to the nearest dollar. $ Also, what would be her purchasing power if deflation of 2 percent occurred? Round your answer to the nearest dollar. $
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
1. Yvette took out a term loan with an annual interest rate of 4.61% to pay for a car. The beginning balance for a particular month was $6,596.82 and the balance after that month's payment was $6,143.11. What was Yvette's monthly payment? Round your answer to the nearest penny. 2. Assuming there were no buying/selling fees, what would be the total capital gain if 133 shares of DCBA stock were purchased for $32.14 per share and all 133 shares were sold for $41.76 per share six months later? Round your answer to the nearest penny.
B 3.
Simple Interest An investor purchased 250,000 USD in 364-day T-bills 315 days before maturity to yield 1.12%. The purchase price was 247,606.69 USD. He sold the T-bills 120 days later to yield 1.47%. What annualized rate of return did the investor realize on the investment? Also, can this be done with a financial calculator?

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