Question: Example 2: In mid-December 2021, Kautal Hore Ltd, a US company based in Mexico had a US dollar debt of $264 million. At that time,

Example 2: In mid-December 2021, Kautal Hore Ltd, a US company based in Mexico had a US dollar debt of $264 million. At that time, Mexico's new peso (Ps) was traded at Ps 3.45/US$1, a pegged rate that had been maintained with minor variations since January 1, 2020 when the new currency unit was created during the peak of Covid-19. On December 22, 2021 the new peso was allowed to float because of the economic evens relating to Covid -19 and political events within Mexico, and in one day it sank to Ps4.65/US$. For most of the following January 2022, it traded in a range near Ps5.50/US$. You are required to determine the following: a. What is Kautal Hore Ltd's increase in the Peso amount of its dollar debt? b. What is the percentage increase in the dollar debt? c. What is the implication of this increase if any in dollar terms

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