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3. A U.S.-based MNC obtains 60% of its financing in euros. All of the MNC's sales are in U.S. dollars. How will a depreciation of

3. A U.S.-based MNC obtains 60% of its financing in euros. All of the MNC's sales are in U.S. dollars. How will a depreciation of the euro affect the MNC's dollar earnings?

a. increase earnings b. decrease earnings c. no effect d. cannot be determined

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