How much has the dollar tax shield

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Reference no: EM132045584

A U.S firm has £750,000 of depreciation expense on its subsidiary's books. The US income tax rate is 35 percent adn the spot exchange rate is £0.75/$. If the dollar appreciates to £0.85/$, how much has the dollar tax shield (i.e., the tax savings because of depreciation expense) changed?

Reference no: EM132045584

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