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Question
FTX, a U.S. electronics firm, has operations in Japan. Currently, the yen is rising against the dollar. Which of the following will most likely occur?
A) Translated earnings will be higher than before the strengthening of the exchange rate.
B) Translated earnings will be lower than before the strengthening of the exchange rate.
C) There will be no gain or loss on translating the financial statements into dollars.
D) The gains or losses will not affect earnings per share and stock prices.
Answer
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