Canadian dollar appreciation

Reference no: EM13133867

Whitewater 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 C$6 million. Its interest expense on Canadian loans is C$4 million. Given these exact figures above, the dollar value of Whitewater's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of Whitewater's cash flows would ____ if the Canadian dollar appreciates.

a. increase; increase

b. decrease; increase

c. decrease; decrease

d. increase; decrease

e. increase; be unaffected

Reference no: EM13133867

Questions Cloud

Prepare an advertisement : Prepare an advertisement for that position that complies with federal law. This advertisement must be detailed. The minimum length of your job description must be 300 words (approximately three-fourths of a page). You can make up the job details but ..

The practices of allopathic vs. homeopathic medicine, : it relates to the practices of allopathic vs. homeopathic medicine, has one method proven to be more effective than the other over time? Please support your answer with facts and references.

What is the depreciation base of this asset : G Corporation purchased a truck at the beginning of 2012 for $90,000. The truck is estimated to have a salvage value of $3,600 and a useful life of 120,000 miles. It was driven 18,000 miles in 2012 and 32,000 miles in 2013. What is the depreciatio..

Social law with one : Compare and contrast the major characteristics of Social Law with one (1) other family of law of your choosing. Conclude two to three (2-3) advantages to your nation incorporating Social Law as opposed to any other family of law.

Canadian dollar appreciation : Given these exact figures above, the dollar value of Whitewater's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of Whitewater's cash flows would ____ if the Canadian dollar appreciates.

What is ?e for the combustion of graphite : When 0.100g of graphite is burned completely in a bomb calorimeter(heat capacity =3.344kJ/?C), containing 3000 g of water, a temperature rise of 0.21?C is observed.

List the equally likely outcomes : Bolts are randomly selected until a 5 mm bolt is obtained. The outcomes are the sequences of bolts that can be selected. So one outcome is 1, and the other is 342. List the equally likely outcomes.

Ninety days after date : Briggs signed a note that read in part as follows: "Ninety Days after date, I, we or either of us, promise to pay to the order of Three Thousand Four Hundred Ninety-Eight and 45/100-Dollars." The words and symbols in italic were typed, and the rest o..

Decision by a us based mnc to divest a subsidiary : Which of the following is not directly considered in the decision by a U.S.-based MNC to divest a subsidiary?

User Account

All Pages