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    Hudson Co: Valuation of a multi-national corporation

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    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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    The valuation changed as a result of political risk because political risk always brings financial uncertainty. While there has been no change in cash flows, the problem with ...

    Solution Summary

    This solution discusses the Hudson Co: Valuation of a multi-national corporation case. Political risk, future cash flow related to the peso, and valuation are discussed.