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Valuation of an MNC. Hudson Co., a U. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson's best guess of its...

Valuation of an MNC. Hudson Co., a U.S. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson’s best guess of its future peso cash flows to be received has not changed. However, its valuation has declined as a result of the increase in political risk Explain.

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