Suppose a basket of goods and services that costs $100 in the united states costs 800 pesos in mexico and the current nominal exchange rate is 10 pesos per u. s. dollar. over the next five years, the cost of that market basket rises to $120 in the united states and to 1,200 pesos in mexico, although the nominal exchange rate remains at 10 pesos per u. s. dollar. calculate the following: a. the real exchange rate now and five years from now, if today's price index in both countries is 100. [reminder: equation 15-1 provides the price index formula: (cost of market basket in a given year/ cost of market basket in base year) x 100. for this problem, use the current year as the base year.] b. purchasing power parity today and five years from now

Assume today is december 31, 2013. barrington industries expects that its 2014 after-tax operating income [ebit(1 – t)] will be $400 million and its 2014 depreciation expense will be $70 million. barrington's 2014 gross capital expenditures are expected to be $120 million and the change in its net operating working capital for 2014 will be $25 million. the firm's free cash flow is expected to grow at a constant rate of 4.5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.6%; the market value of the company's debt is $2.15 billion; and the company has 180 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. using the corporate valuation model, what should be the company's stock price today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations.

Gdonald was unhappy that his company did not provide good transport facilities. he found it very strenuous to drive to work on his own, and this eventually led to job dissatisfaction. hence, he recommended ways to solve this problem. according to the evln model, this information suggests that donald's main reaction to job dissatisfaction was:

How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c.increase prices