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Chapman, Inc. ' s Mexican subsidiary, V . Gomez Corporation, is expected to pay to Chapman 6 5 pesos in dividends in 1 year after
Chapman, Inc.s Mexican subsidiary, V Gomez Corporation, is expected to pay to Chapman pesos in dividends in year after all foreign and US taxes have been subtracted. The exchange rate in year is expected to be dollars per peso. After this, the peso is expected to depreciate against the dollar at a rate of a year forever due to the different inflation rates in the United States and Mexico. The pesodenominated dividend is expected to grow at a rate of a year indefinitely. Chapman owns million shares of V Gomez. What is the present value of the dividend stream, in dollars, assuming V Gomez's cost of equity is Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $ million should be entered as not Round your answer to two decimal places.
$
million
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