Consider two South African companies listed on the Johannesburg stock exchange: Company A is a mining company that exports a large part of its minerals production. Much larger competitors can be found in Latin and North America. The market price of its production is largely determined in US dollars in the world market. Company B imports various engine parts from Europe and the United States. The demand for its product is highly price elastic. A significant rise in South African rand prices lowers the demand. (a) What will happen to the earnings and stock prices of the two companies if there is a sudden and large devaluation of the South African rand against major currencies? (b) What can you say about the currency exposures of the two companies (y's)