In 1998, Daimler-Benz bought 100% of Chrysler Corp. for $36 billion. In 2007, DaimlerChrysler announced it was selling 80.1% percent of Chrysler to the private-equity firm Cerberus Capital Management for $7.4 billion. In 1998, one Deutsche mark was worth $0.56. The Deutsche mark was later replaced with the euro at DM1.95583 = €1. In 2007, one euro was worth $1.13.

a. Ignoring the time value of money, what was Daimler-Benz’s dollar gain or loss on its investment in Chrysler Corp.?

b. What was Daimler-Benz’s euro gain or loss on the sale?