Americo is a US$-$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 are as follows:

Business Performance $(000$s$,$ local currency$)$

US Parent Company $($US$$)$

Brazilian Subsidiary $($reais$,$ R$$)$

German Subsidiary $($euro$,)$

Chinese Subsidiary $($yuan$,)$

Earnings before taxes $($EBT$)$

$$4,500$

R$ $6,250$

$4,500$

$2,500$

Corporate income tax

$35\%$

$25\%$

$40\%$

$30\%$

Average exchange rate for the period

$-$

R$$1\mathrm{.}80/$$

$0\mathrm{.}7018/$$

$7\mathrm{.}750/$$

Americo must pay corporate tax in each country in which it currently has operations.

a$.$ After deducting taxes in each country, what are Americo$$s consolidated earnings and consolidated earnings per share in US dollars?

b$.$ Assume a major political crisis wracks Brazil, first affecting the value of Brazilian reais and, subsequently, inducing an economic recession. What would be the impact on Americo$$s consolidated earnings and EPS if the Brazilian reais were to fall in value to R$$3\mathrm{.}00/$$$,$ earnings before taxes in Brazil fell as a result of the recession to R$$5,800,000?$