Mary Chalmers, Who Lives in Minnesota, Purchased 100 Shares of Delton

question 32

Multiple Choice

Mary Chalmers, who lives in Minnesota, purchased 100 shares of Delton Cables, a diversified machinery company headquartered in Germany. She purchased the stock in January of 2011 for €62.50 per share when the exchange rate was at $1.330/€. Today, the stock is trading for €68.00 per share and the exchange rate is $1.48/€. If Mary sells her shares today, what is the total return on her investment?

• A) 11.28%
• B) 20.08%
• C) 8.80%
• D) 26.41%

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Definitions:

Disbursement Float

The time delay between when a check is issued and when it is deducted from the payer's bank account.

Issuance

The process of offering new or existing securities for sale to investors by a corporation or government entity.

Bank Account

A financial account maintained by a bank or other financial institution where the funds deposited by an account holder can be accessed.