Ask Question
BusinessBusiness
11 October, 01:27

BierCo is a beer company based in Germany. You purchased the stock in 2011 for 100 Euros when the exchange rate was 1.4 EUR / USD. Today BierCo's price is 120 Euros and the exhange rate is 1.12 EUR/USD. What is the dollar-denominated total return? Express in decimal total return format (i. e., 0.01 represents 1%).

+2
Answers (1)
  1. 11 October, 04:00
    0
    Decimal total dollar denominated return is 0.50

    Explanation:

    The dollar purchase price of the stock = 100/1.4*$1

    =71.42857143 * $1

    =$71.42857143

    today's dollar selling price = 120/1.12*$1

    =107.1428571 * $1

    =$107.1428571

    Dollar denominated total return in money terms=$107.1428571 - $71.42857143

    =$35.71428571

    However the dollar-denominated return in percentage terms is computed the below formula

    dollar denominated return % = (today's price-initial price) / initial price

    = ($107.1428571 - $71.42857143) / $71.42857143

    =0.50 which represents 50%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “BierCo is a beer company based in Germany. You purchased the stock in 2011 for 100 Euros when the exchange rate was 1.4 EUR / USD. Today ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Land was acquired in 2018 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000.
Answers (1)
If there is a substantial amount of capital leaving a country, what is a country most likely to implement to control the situation? A. import restrictionsB. local-content lawsC. exchange controlsD. price controlsE. tax controls
Answers (1)
If your friend recently has participated in e-filing, what has he or she been doing?
Answers (1)
Sheridan Inc. reported total assets of $6408000 and net income of $503000 for the current year. Sheridan determined that inventory was understated by $137000 at the beginning of the year and $58700 at the end of the year.
Answers (1)
Shelly and Tom disagree over the amount of money due under their contract. To avoid involving any third party in a resolution of the dispute, Shelly and Tom might prefer to use the alternative dispute resolution method of ___. a. arbitration b.
Answers (1)
New Questions in Business
On March 1, 2017, Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash.
Answers (1)
A. Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent, and the required rate of return on Acme Healthcare stock is 15 percent.
Answers (1)
taxes: a. are unlikely to affect market supply and demand b. are copmulsory payments to governments c. never affect efficiency in the allocation of resourcesd. are voluntary payments to governments
Answers (1)
Mycenaean Greece became more powerful after a. creating trade networks with Egypt b. war with Persia. c. destruction of Crete d. political consolidation in. the Dark Ages
Answers (1)
An increase in the reserve requirement increases reserves and decreases the money supply. a. true b. false
Answers (1)
Home » Business » BierCo is a beer company based in Germany. You purchased the stock in 2011 for 100 Euros when the exchange rate was 1.4 EUR / USD. Today BierCo's price is 120 Euros and the exhange rate is 1.12 EUR/USD.
Sign Up Forgot Password?