Americo's EPS Sensitivity to Exchange Rates (A). 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 647,000 shares outstanding. The basic operating characteristics of the various business units are as follows: (Click on the icon to import the table into a spreadsheet.) Business Performance (000s) Earnings before taxes (EBT) Corporate income tax rate Average exchange rate for the period U.S. Parent (US$) $4,470 21% Business Performance (000s) Earnings before taxes (local currency) Less corporate income taxes Net profits of individual subsidiary $ $ Brazilian Subsidiary (R$) R$6,350 25% R$1.7861/$ -C German Subsidiary () 4,410 Americo must pay corporate income tax in each country which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? 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 the Brazilian reais were to fall in value to R$2.9638/$, with all other earnings and exchange rates remaining the same? 40% 0.7549/$ a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent Company Chinese Subsidiary () 2,500 30% 7.8455/$