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please help me out. Intro Companies A and B are both U.S, companies with operations in Mexico. The regression equations explaining are given below: Company
please help me out. Intro Companies A and B are both U.S, companies with operations in Mexico. The regression equations explaining are given below: Company A: PCFt=0.0332.1et+t Company B: PCFt=0.004+5.2et+t where: - PCF1= percentage change in annuat U.S. dollar cash flows - e1= percentage change in the exchange rate for the Mexican peso (measured in U.S. dollars per peso) Part 1 Attempt 1/5 for 10pt Which company has more economic exposure to the Mexican peso? Company B Company A Correct Since company B has a larger regression coefficient on the percentage change in the exchange rate, it has more economic exposure to the peso. Part 2 Altempt 2/5 for 8p Which statements are likely to be true? Check all that apply: Company B primarily imports from Mexico. Company A primarily exports to Mexico. Company B primarily exports to Mexico. Company A primarily imports from Mexico
please help me out.
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