Which one of the following would be considered a capital budgeting decision?
a. planning to issue common stock rather than issuing preferred stock. b. deciding to expand into a new line of products, at a cost of $5 million. c. repurchasing shares of common stock. d. issuing debt in the form of long-term bonds.

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?