In 1990, Matsushita bought MCA Inc. for $6.1 billion. At the time of the purchase, the exchange rate was about 145/$. By the time that Matsushita sold an 80% stake in MCA to Seagram for $5.7 billion in 1995, the yen had appreciated to a rate of about 97/$.

a. Ignoring the time value of money, what was Matsushitas U.S. dollar gain or loss on its investment in MCA?

b. What was Matsushitas yen gain or loss on the sale?

c. What did Matsushitas yen gain or loss translate into in terms of U.S. dollars? What accounts for the difference between this figure and your answer to part a?