Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. after all foreign and u.s. taxes, a u.s. corporati

After all foreign and U.S. taxes, a U.S. corporation expects to receive 4 pounds of...

60.1K

Verified Solution

Question

Finance

After all foreign and U.S. taxes, a U.S. corporation expects to receive 4 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be $1.27 per pound, and the pound is expected to depreciate 4% against the dollar each year for an indefinite period. The dividend (in pounds) is expected to grow at 11% a year indefinitely. The parent U.S. corporation owns 7 million shares of the subsidiary. What is the present value in dollars of its equity ownership of the subsidiary? Assume a cost of equity capital of 13% for the subsidiary. Do not round intermediate calculations. Round your answer to the nearest dollar.

$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What does it mean for a quantity to be conserved? Why are conserved physical quantities useful...

Physics
Q

1. The Disruptive Behavior Disorders consist of ADD / ADHD, Conduct Disorder (CD), and Oppositional Defiant...

Psychology
Q

Identify the key steps in the injection moulding process, explaining how and why temperature, time and...

Mechanical Engineering
Q

Can I have a two-page summary of the book of \"Theory and Design for Mechanical Measurements\",...

Mechanical Engineering
Q

How can you tell if an object is charged? Explain using induction or conduction or friction.

Physics
Q

Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $26,000, four-year, 12%...

Accounting
Q

What does the Privileges and Immunities Clause state shall be entitled to all Privileges and...

Biology
Q

Perform the indicated operations 2p 26 4p 3p 6 2p 6p 20 2p 26 4p...

Algebra
Q

The displayed chart and accompanying histogram show the numbers of home runs hit by all...

Algebra
Q

11 5 points Use the graph of f x to sketch the graph of y...

Algebra
Q

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions...

Accounting
Q

TB MC Qu. 5A-66 Jorgenson Corporation has provided... Jorgenson Corporation has provided the following deata...

Accounting