Excel Online Structured Activity: Foreign Investment Analysis Chapman, Inc.'s Mexican subsidiary, V. Gomez Corporation, is expected to pay to Chapman 20 pesos in dividends in 1 year after all foreign and U.S. taxes have been subtracted. The exchange rate in 1 year is expected to be $0.07 per peso. After this, the peso is expected to depreciate against the dollar at a rate of 5% a year forever due to the different inflation rates in the United States and Mexico. The peso-denominated dividend is expected to grow at a rate of 7% a year indefinitely Chapman owns 5 million shares of V. Gomez. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What is the present value of the dividend stream, in dollars, assuming V. Gomez's cost of equity is 14%? Do not round intermediate calculations. Round your answer to the nearest dollar. Check My Work Reset Problem B D E H 20 pesos $0.07 5.00% 7.00% 5.000.000 14.00% Formulas #N/A A 1 Foreign Investment Analysis 2 3 Year 1 dividends, D, 1-year forward exchange rate, U.S. dollars 4 required to buy 1 peso 5 Annual depreciation rate of peso against dollar 6 Peso denominated dividend annual growth rate 7 Number of common shares owned 8 Cost of equity. 9 10 Step 1: Convert Pesos to Dollars 11 Year 1 dividends in dollars, D, 12 Step 2: Find the Growth Rate in 13 Dollar-Denominated Divdiends: 14 Growth in exchange rate 15 Growth rate in dollar-denominated dividends 16 Step 3. Calculate the Per-Share Stock Price 17 in Dollars 18 Pa 19 Step 4: Calculate the Dollar Value of the 20 Equity Investment: 21 Value of equity investment, in dollars 22 23 24 25 26 27 28 29 30 #N/A #N/A #N/A WNA e Sheet1 + Calculation Mode: Automatic Workbook Statistics Hi