Question 1 4 pts Dell is selling 20,000 units in Europe at an average price of 1,700 per unit. Both the spot and forward exchange rates are $1.20/. The cost of each unit in dollars is $1.500 per unit. The elasticity of demand for Dell computers in Europe is E-1.5. Reconsider a depreciation of Euro (relative to US dollar) from $1.20/ to $1.08/. Now assume passthrough -0.5. What is Dell's total profit in S? O $12,028,410 $11.869 440 $8,028,860 $6.397.440 Question 7 4p Use the information in the following table. Correlation Coefficients Stansfield England World SD (%) ER (%) Stansfield 1.00 0.90 0.50 20 ? England 1.00 0.70 18 14 World 1.00 15 12 Suppose that the British stock market is integrated with the rest of the world and Stansfield Company has made its shares tradable internationally via cross-listing on the NYSE. Using the CAPM and a risk-free rate of 6%, estimate the equity cost of capital for Stansfield. 14% 10% 12% 11%