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Canyon Co. is a U.S. company with sales to Canada amounting to C$10 million. Its cost of materials attributable to the purchase of Canadian goods
Canyon Co. is a U.S. company with sales to Canada amounting to C$10 million. Its cost of materials attributable to the purchase of Canadian goods is A$7 million. Its interest expense on Canadian loans is if the Canadian dollar appreciates; the dollar value of Canyon Co.'s cash C$2 million. Given these exact figures above, the dollar value of Canyon Co.'s "earnings before interest and taxes" would flows would if the Canadian Dollar appreciates. Here is a blank spreadsheet in case you need it for the test: blank spreadsheet.xlsx OA decrease; increase OB. decrease; decrease OC increase; increase OD, increase; decrease OE increase; be unaffected
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