Recall the MNC valuation equation: $V={\displaystyle \underset{t=1}{\overset{n}{}}}\{\frac{{\displaystyle \underset{j=1}{\overset{m}{}}}E(C{F}_{j,t})E(s_{j,t})}{(1+k{)}^t}\}$

Where $C{F}_{j,t}$ represents the amount of cash flow denominated in a particular foreign

currency $j$ at the end of period $t{S}_{j,t}$ represents the exchange rate at which the foreign

currency $($measured in dollars per unit of the foreign currency$)$ can be converted to

dollars at the end of period $t$; and $k$ is the weighted average cost of capital.

Which part of this valuation equation is affected by the following and how will each of

the following impact valuation:

a$.$ Increased risk associated with the line of business