1. 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 NADSAQ. Americo currently has 500,000 shares outstanding. The basic operating characteristics of the various business units are as follows:

			U.S. Parent		Brazilian		German		Chinese
			Company		Subsidiary		Subsidiary		Subsidiary
	Business Performance (000s, loccal currency)		(US$)		(reais, R$)		(euros, )		(yuan, Y)
	Earnings before taxes (EBT)		$5,000		R$6,500		4,750		Y4,500
	Corporate income tax rate		34%		30%		38%		32%
	Average exchange rate for the period		------		R$2.1455/$		0.6873/$		Y6.0145/$

1. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars?
2. What would be the impact on Americos consolidated EPS if all foreign currencies were to depreciate 15% against the U.S. dollar?
3. In addition to part 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 on Americo's consolidated EPS if, in addition to the fall in the value of the reais to R$3.7288/$, earnings before taxes in Brazil fell as a result of the recession to R$4,500,000?