Problem 13 > A late penalty of 20% will apply to new answers. 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(PCF) = 0.019 + 2.5E(er) where E(et) 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 $0.0518 per peso and the expected exchange rate is $0.0523 per peso, what is the expected percentage change in annual U.S. dollar cash flows? |+ decimals Submit