Beaver is a canadian fashion shop with operations aboard. Beaver has formed a joint venture with a
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Beaver is a canadian fashion shop with operations aboard. Beaver has formed a joint venture with a U.K. firm.Beaver! Expects receive cash dividends from the joint venture over the next four year. The first dividend will be paid one year from now with an amount of £50,000 for the following the end of year dividend is expected to increase by 10% annually. If the current CAD/GBP exchange rate 1.58 CAD/GBP, and beaver has a WACC of 11%.
Answer the following question.
What is the present value of the expected dividend stream if the pound is expected to depreciated 4% a year against the canadian dollar?
Related Book For
Multinational Business Finance
ISBN: 978-0133879872
14th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
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