Question: C4 X fx A B C D 1 2 Foreign Investment Analysis 2 3 Year 1 dividends, D 20 pesos 4 to buy 1

C4 X fx A B C D 1 2 Foreign Investment Analysis 2 3 Year 1 dividends, D 20 pesos 4 to buy 1 peso 569 1-year forward exchange rate, U.S. dollars required Annual depreciation rate of peso against dollar $0.10 3.00% Peso-denominated dividend annual growth rate 6.00% 7 Number of common shares owned 15,000,000 8 Cost of equity, r 16.00% 9 10 Step 1: Convert Pesos to Dollars 11 Year 1 dividends in dollars, D 12 13 Step 2: Find the Growth Rate in Dollar-Denominated Divdiends: 14 Growth in exchange rate Formulas #N/A #N/A 15 Growth rate in dollar-denominated dividends #N/A 16 17 Step 3: Calculate the Per-Share Stock Price in Dollars: 18 Po #N/A 19 2222 23 20 Step 4: Calculate the Dollar Value of the Equity Investment: 21 Value of equity investment, in dollars #N/A

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