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Assume a Canadian.-based subsidiary wants to raise C$1 million by issuing a bond denominated in U.S. dollars. The current exchange rate of the U.S dollar
Assume a Canadian.-based subsidiary wants to raise C$1 million by issuing a bond denominated in U.S. dollars. The current exchange rate of the U.S dollar is C$.1.25. Thus, the MNC needs ____ dollars to obtain the C$1 million needed.
| a. | None of these are correct. | |
| b. | $800,000 | |
| c. | 1,000,000 | |
| d. | $1,250,000 |
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