Question: Explicate the main reason a foreign currency appreciation increases the profitability of a foreign investment, ceteris paribus. Direct your explication to the conversion of debt
Explicate the main reason a foreign currency appreciation increases the profitability of a foreign investment, ceteris paribus. Direct your explication to the conversion of debt payment (principal and interest) and dividends from the foreign currency, let us say, ringit to dollars. Everything else presuppose remains constant. Do everything above assuming the foreign currency depreciates against the dollar.
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