Americo Industries-2010 Problem are based on Americo Industries. Americo is a U.S.-based multinational manufacturing firm with wholly owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 650,000 shares outstanding. The basic operating characteristics of the various business units is as follows U.S Parent Subsidiary (reais, Subsidiary (USS) Chinese Subsidiary (yuan, ) Brazilian Germarn Business Performance (000s) RS) (euros, ) Earnings before taxes (EBT) $4,500 R$6,250 4,500 2,500 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.80/S 0.7018/9 47.750/$ Americo's EPS Sensitivity to Exchange Rates (B) Assume a major political crisis wracks Brazil, first affecting the value of the Brazilian reais and subsequently, inducing an economic recession within the country. What would be the impact or Americo's consolidated EPS if, in addition to the fall in the value of the reais to R$3.00/S earnings before taxes in Brazil fell as a result of the recession to R$5,800,000