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AGB Inc. is considered a multinational corporation (MNC). The main operations are in New York, but the company has a foreign subsidiary in Switzerland. Seven

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AGB Inc. is considered a multinational corporation (MNC). The main operations are in New York, but the company has a foreign subsidiary in Switzerland. Seven years from today, the firm is expected to generate $470,000,000 from the U.S. operations. For the operations in Switzerland, the foreign operation is expected to generate 62,000,000 Swiss Francs. The expected exchange rate is 1 Franc =$1.47. Assume that the investors and creditors required a weighted average rate of return of 9%. 1) Compute the expected U.S. dollar value of the foreign currency cash flow. 2) Compute AGB's value using the Multinational Valuation Model

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