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Company's Value in Dollars Based on its Stock Price

Tundra, Inc. plans to make an offer for a Chinese company. The Chinese company has 50 million shares outstanding and price per share is 3 yuan. The current spot exchange rate is $1 = 6.27yuan and the estimated spot rate at the end of 6 months is 6.24. (1) Calculate the Chinese company's value in dollars based on its stock price; and (2) Calculate the value in dollars if the estimated spot rate at the end of 6 months is used?

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Solution:
1) Chinese company's value in dollars based on its stock price= Share price in $* Number of shares ...

Solution Summary

The solution helps determining the company's value in dollars based on its stock price with step-by-step workings and all calculation formulas shown.

$2.19