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Black Bird Corp. is a US firm that is considering investing in a subsidiary in Canada. The subsidiary will generate 45M CAD per year
Black Bird Corp. is a US firm that is considering investing in a subsidiary in Canada. The subsidiary will generate 45M CAD per year forever. The spot exchange rate is 1.1 CAD/$. The current risk-free rate in US is 5% and the risk-free rate in Canada is 9%. What is the cash flow (in millions) in year 1 if you are using the home currency approach?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
