Made a gain or loss as a result

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Reference no: EM13812267

You are the vice president of International Info change, headquartered in Chicago, Illinois. All shareholders of the firm live in the US. Earlier this month, you obtained a loan of 20 million Canadian dollars from a bank in Toronto to finance the construction of a new plant in Montreal. At the time the loan was received, the exchange rate was $1 = 0.85 Canadian dollar. By the end of the month, it has unexpectedly dropped to 0.80 Canadian dollars. Has your company made a gain or loss as a result and by how much? Ignore any interest on your loan. Show your work.

Reference no: EM13812267

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