Vision Inc. is financed through both debt and equity, with a D/E ratio of 0.75. The firm’s overall risk is measured at a beta of 1.3 with a cost of equity of 12 percent. The risk-free rate of return is 2.5 percent and the tax rate is 30%. The company’s debt consists of semiannual bonds, with a coupon rate of 10%. They have 10 years to maturity and currently sell for $1,000.

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.