Foreign Investment Analysis Year 1 dividends, D1 20 pesos 1-year forward exchange rate, U.S. dollars required to buy 1 peso Annual depreciation rate of peso against dollar $0.05 Peso-denominated dividend annual growth rate 6.00% Number of common shares owned 15,000,000 Cost of equity, rs 14.00% Step 1: Convert Pesos to Dollars Formulas Year 1 dividends in dollars, D1 \#N/A Step 2: Find the Growth Rate in Dollar-Denominated Divdiends: Growth in exchange rate Growth rate in dollar-denominated dividends \#N/A Step 3: Calculate the Per-Share Stock Price in Dollars: P0 \#N/A Step 4: Calculate the Dollar Value of the Equity Investment: Value of equity investment, in dollars \#N/A