Use your solution to the following problem to answer questions 39 and 40. Assume that it is now Jan. 2021. ABC Inc. (US) expects to receive cash dividends from a joint venture in Korea over the next five years. The first dividend of 55m Won will be paid at the end of the year in Dec. 2021. The dividends are then expected to grow at an annual rate of 10% over the following four years. The current exchange rate (W/$) is 1,177 and AZDT's average weighted cost of capital is 8%. If the dollar is expected to appreciate by 5% per year against the won over the investment period, the applicable exchange rate (W/5) at the end of year 5 is given by: O 1430.65 O 1271.16 O 1294.70 O 1502.18
