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A U.S. company with sales to Canada amounting to C$6 million. Its cost of materials attributable to the purchase of Canadian goods is C$8 million.
A U.S. company with sales to Canada amounting to C$6 million. Its cost of materials attributable to the purchase of Canadian goods is C$8 million. Its interest expense on Canadian loans is C$2 million. Given these exact figures above, the dollar value of its "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of its cash flows would ____ if the Canadian dollar appreciates.
increase; increase | ||
decrease; increase | ||
decrease; decrease | ||
increase; decrease |
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