Valuation of a Planned Divestiture Dallen Co. has a subsidiary in Mexico that does research and development and produces prescription pills that are transported to and sold in the United States. The parent used its own funds to build the subsidiary. Dallen Co. pays for the operations in Mexico in Mexican pesos, but all of its revenue from selling the pills in the United States is denominated in dollars. It has no other international business. Dallen’s competitors are local firms in the United States that have no international operations. Two days ago, Dallen received an offer from a firm to buy Dallen’s subsidiary, and the offer is in effect for a few days.
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