Nevade Ca. is o U.S. Firm that conducts major importing and exporting business in Japan, and all transactions are involced in dellars. It obtained debt in the United States at an interest rate of target capital structure is 20 percent debt and 00 percent equity. Nevada Co. is mbject to a 25 percent corporate tax rate. a. Eatimate the cont of capitai to Neveds co. Round your answer to tro decimal places: b. Neveda has no subsidiaries in foreign countries but plans to replace some of its dolar depeminated debt with Japanese ven-denominated debt because alapanese interest rates are low, It will obtain yen-denominated debt ot an interest rate of 5 persent, it carnot effectively hedge the excharge rate rigk resulting from this dekt because of parity cond tions that make the price of derivatives contracts reflect the interest rate differential. How could Nevada Co, reduce ita exposure to the exchange rate risk resulting from the yen-denaminated debt without moving its operations? Involce exports in , and une to pay oft foun