Question $5$

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 one year from now on December

$31,$ is expected to be $720,000.$ The dividend is then expected to grow $10\mathrm{.}0\%$ per year

over the following two years. The current exchange rate is $$1\mathrm{.}1940=1\mathrm{.}00.$ Grenouille's

weighted average cost of capital is $12\%.$ What is the present value of the expected euro

dividend stream if the euro is expected to appreciate $4\mathrm{.}00\%$ per annum against the dollar?

Note: do not round intermediate steps. Round the final answer to the nearest dollar.