Hydrotech Manufacturing of Houston Texas Expects to Receive Dividends Each

Hydrotech Manufacturing of Houston Texas expects to receive dividends each year from a foreign subsidiary for the next 5 years. The dividend is expected to grow at a rate of 7% per year. If the euro appreciates in value against the dollar at a rate of 2% per year over the life of the dividends,then the present value of the euro dividends to Hydrotech will be ________ if there had been no change in the relative values of the euro and dollar.

A) less than
B) greater than
C) the same as
D) There is not enough information to answer this question.