Business
Business, 12.02.2020 00:54, enrique3300

Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic business are $100,000, and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of the won is $.0012.

a. What are the expected dollar cash flows of Livingston Co.?
b. What is the present value of the firm if the firm is expected to generate the constant amount of expected dollar cash flows for 10 years?

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