What is the present value of the expected euro

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XYZ Firm {U5} expects to receive cash dividends from a European joint venture ever the coming three veers. The first dividend , to be paid December 31, 2011, is expected to be €400,000. The dividend is then expected to grow 8.0% per vear over the following two vears. The current exchange rate is $1.413f?. XYZ's weighted average cost of capital is 10%. What is the present value of the expected euro dividend stream if the euro is expected to appreciate 4.00% per annum against the dollar?

Reference no: EM133111024

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