Dollar value of earnings before interest and taxes

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Reference no: EM131536977

A U.S. company with sales to Canada amounting to C$6 million. Its cost of materials attributable to the purchase of Canadian goods is C$8 million. Its interest expense on Canadian loans is C$2 million. Given these exact figures above, the dollar value of its "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of its cash flows would ____ if the Canadian dollar appreciates.

increase; increase

decrease; increase

decrease; decrease

increase; decrease

Reference no: EM131536977

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