Grenouille

Properties.

Grenouille Properties? (U.S.) expects to receive cash dividends from a French joint venture over the coming three years. The first? dividend, to be paid in one? year, is expected to be

euro 740,000. The dividend is then expected to grow 9.9?% per year over the following two years. The current exchange rate is $ 1.3724 Grenouille's weighted average cost of capital is 12.5?%. a. What is the present value of the expected dividend stream if the euro is expected to appreciate 3.90?%

per annum against the? dollar?b. What is the present value of the expected dividend stream if the euro were to depreciate

2.80?% per annum against the? dollar?

a. Assume that the euro is expected to appreciate 3.90?%

per annum against the dollar. Calculate the dividends in U.S. dollars for the next three years? below:???(Round to the nearest whole number for the dividends and round to four decimal places for the exchange? rates.)

	Year 0		Year 1		Year 2		Year 3
Dividend stream expected from investment ()			740,000
Current and expected spot rate ($/)	1.3724
Dividends ($)		$		$		$