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solutions to in class excercise valuation

solutions to in class excercise valuation - 1 166,000(1.12...

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MNC Valuation: In-Class Exercise / Solution $0.60 80,000 $0.50 60,000 German Mark CF (Yr 1): 25,000+ 100,000 * 0.70 + 60,000 * 0.50 = $125,000 CF (Yr 2): 22,000+ 120,000 * 0.80 + 80,000 * 0.60 = $166,000 Value = 125,000 / (1.12)
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Unformatted text preview: 1 + 166,000 / (1.12) 2 = $243,941 K = 12% $0.80 120,000 $0.70 100,000 Swiss Franc 22,000 25,000 Dollar Exchange Rate Cash flow Exchange Rate Cash flow Year 2 Year 1...
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