Question: I am struggling with the excel formulas. Please help identify the formula used to solve the questions, for example B3*B4 is used in the Year
I am struggling with the excel formulas. Please help identify the formula used to solve the questions, for example B3*B4 is used in the Year 1 dividends in dollars D1 equation. Thank you! The needed equations are identified as ???? below:
| Foreign Investment Analysis | ||
| Year 1 dividends, D1 | 50 | pesos |
| 1-year forward exchange rate, U.S. dollars required to buy 1 peso | $0.06 | |
| Annual depreciation rate of peso against dollar | 5.00% | |
| Peso-denominated dividend annual growth rate | 6.00% | |
| Number of common shares owned | 10,000,000 | |
| Cost of equity, rs | 15.00% | |
| Step 1: Convert Pesos to Dollars | Formulas | |
| Year 1 dividends in dollars, D1 | ???? | #N/A |
| Step 2: Find the Growth Rate in Dollar-Denominated Divdiends: | ||
| Growth in exchange rate | ???? | #N/A |
| Growth rate in dollar-denominated dividends | ???? | #N/A |
| Step 3: Calculate the Per-Share Stock Price in Dollars: | ||
| P0 | ???? | #N/A |
| Step 4: Calculate the Dollar Value of the Equity Investment: | ||
| Value of equity investment, in dollars | ???? | #N/A |
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