Merson Electric common stock selling for $36.75. The stock recently paid $1.32 dividend per share and its most recent EPS is $3.06. The firm expects to grow at the same rate for the foreseeable future. Emerson’s ROE is 11%.The current return on the S&P 500 is 7.50%; the return on Treasury bonds is 3.5%; and Emerson’s beta is 1.85.

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?