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 7770,000. The dividend is then expected to grow 9.8%per year over the following two years. The current exchange rate is $1.3252/ Grenouille's weighted average cost of capital is 11.5%.

a. What is the present value of the expected dividend stream if the euro is expected to appreciate 4.20%per annum against the dollar?

b. What is the present value of the expected dividend stream if the euro were to depreciate 3.20%per annum against the dollar?