Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,350. The share was bought for SF4,690 a year ago. The exchange rate is SF2.05 per U.S. dollar now and was SF1.96 per dollar a year ago. Mr. Silber received SF138 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,690, his principal investment amount, forward at the forward exchange rate of SF2.07 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,350. The share was bought for SF4,690 a year ago. The exchange rate is SF2.05 per U.S. dollar now and was SF1.96 per dollar a year ago. Mr. Silber received SF138 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,690, his principal investment amount, forward at the forward exchange rate of SF2.07 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transactions

Section: Chapter Questions

Problem 25P

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