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Question
Diego is a Brazilian mining company that has operations in Canada. Currently, the Canadian dollar is falling against the Brazilian real. Which of the following will most likely occur?
A) Translated earnings will be lower after the fall in the dollar.
B) Translated earnings will be lower than before the strengthening of the dollar.
C) Translated earnings will be higher than when the Brazilian real was worth more.
D) The gains or losses on translated earnings will not affect earnings per share and stock prices.
Answer
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