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How will change in the value of Euro affect the reported earnings of a U.S. based MNC with European subsidiaries? (assume that earnings is positive)

How will change in the value of Euro affect the reported earnings of a U.S. based MNC with European subsidiaries? (assume that earnings is positive)

  • A. If Euro depreciate, the consolidated earnings will be increased.
  • B. If Euro appreciate, the consolidated earnings will be increased.
  • C. The consolidated earnings are not affected by the value of Euro

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