Use your solution in the following problem to answer parts a through d.

Assume that it is now January 2013. AZDT Inc. (US) expects to receive cash dividends from a joint venture in Korea over the next five years. The first dividend of 45 million Won will be paid in December 2013. The dividend is then expected to grow at an annual rate of 10% over the following four years. The current exchange rate (Won/$) is 922. AZDTs average weighted cost of capital is 8%. You are to obtain the present value of the expected dividend stream under the following exchange rate evolutions.

1. The dollar is expected to depreciate by 5% per year against the won over the investment period.

2. The won is expected to depreciate by 7% per year against the dollar over the investment period.

a.) In part (1) of the problem where the dollar is expected to depreciate by 5% per year against the won over the investment period, the applicable exchange rate, won/dollar, at the end of year 5 is given by: 922(1-.05)^5

A) 1177

B) 713

C) 876

D) 722 4

b.) In part (1), the dollar present value of the expected dividend stream at the given cost of capital (8%) is equal to: Get all CFs in Won, then the appropriate exchange rate (multiply the CF won by the e1-5).. then you divide that by 1+WACC

A) $274,725

B) $351,850

C) $211,309

D) $302,198

c.) In part (2) where the won is expected to depreciate by 7% per year against the dollar over the investment period, the applicable exchange rate, won/dollar, at the end of year 5 is given by:

A) 1293

B) 987

C) 991

D) 1325

d.) In part (2) the dollar present value of the expected dividend stream at the given cost of capital (8%) is equal to:

A) $237,635

B) $211,309

C) $189,099

D) $208,009

Please show all work