Companies A and B are both U.S. companies with operations in Mexico. The regression equations explaining are given below: Company A: P C F t = 0.032 2.7 e t + t Company B: P C F t = 0.02 + 3.9 e t + t where: PCFt = percentage change in annual U.S. dollar cash flows et = percentage change in the exchange rate for the Mexican peso

Which statements are likely to be true?

Check all that apply:

Company B primarily imports from Mexico.

Company A primarily imports from Mexico.

Company A primarily exports to Mexico.

Company B primarily exports to Mexico.

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