After all foreign and u. s. taxes, a u. s. corporation expects to receive 2 pounds of dividends per share from a british subsidiary this year. the exchange rate at the end of the year is expected to be $1.29 per pound, and the pound is expected to depreciate 5% against the dollar each year for an indefinite period. the dividend (in pounds) is expected to grow at 10% a year indefinitely. the parent u. s. corporation owns 10 million shares of the subsidiary. what is the present value in dollars of its equity ownership of the subsidiary? assume a cost of equity capital of 11% for the subsidiary.

I’m pretty sure that the answer is d

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Secure guards but not completely sure