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Intro Teton Stone and Steel is a U.S. construction firm with sales in the U.S. and Mexico. To measure its economic exposure, the company ran
Intro Teton Stone and Steel is a U.S. construction firm with sales in the U.S. and Mexico. To measure its economic exposure, the company ran a regression analysis to explain the expected percentage change in annual U.S. dollar cash flows (PCF): E(PCFt) = 0.012 + 3.6E(et) where Elet) is the expected percentage change in the exchange rate for the Mexican peso (measured in U.S. dollars per peso). Part 1 Attempt 1/10 for 8 pts. If the current exchange rate is $0.0444 per peso and the expected exchange rate is $0.0448 per peso, what is the expected percentage change in annual U.S. dollar cash flows? 4+ decima Submit
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