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14. Translation exposure DutchExport conducts all of its business in the USA and employs the current rate method to translate its accounts into EUR. If

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14. Translation exposure DutchExport conducts all of its business in the USA and employs the current rate method to translate its accounts into EUR. If the company decides to issue 1.5mln debt and use it to buy back equity, how will the translation exposure change, all else equal? a) decrease by 1.5mln b) increase by 1.5mln c) impossible to determine d) translation exposure will not change

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