Question
JBK Co. is a U.S. company with sales to Canada amounting to C$8 million. Its cost of materials attributable to the purchase of Canadian goods
JBK Co. is a U.S. company with sales to Canada amounting to C$8 million. Its cost of materials attributable to the purchase of Canadian goods is A$7 million. Its interest expense on Canadian loans is C$2 million. Given these exact figures above, the dollar value of JBKs earnings before interest and taxes would _______ if the Canadian dollar appreciates; the dollar value of JBKs cash flows would _______ if the Canadian Dollar appreciates. A. increase; increase B. decrease; increase C. decrease; decrease D. increase; decrease E. increase; be unaffected
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