Foreign Investment Analysis

Chapman, Inc. is a United States company with a Mexican subsidiary, V$.$ Gomez Corporation. Gomez is expected to pay to Chapman $55$ 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 $0\mathrm{.}15$ dollars per peso. After this, the peso is expected

to depreciate against the dollar at a rate of $3\%$ 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 $8\%$ a year indefinitely. Chapman owns $10$ million shares of V$.$ Gomez. What is the present value of the dividend

stream, in dollars, assuming V$.$ Gomez's cost of equity is $16\%?$ Do not round intermediate calculations. Enter your answer in millions. For example, an answer

of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$$,$ million