Longhall Co. has $40 million in excess cash in USD to invest in Canada. The canadian dollar

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Longhall Co. has $40 million in excess cash in USD to invest in Canada. The canadian dollar is expected to depreciate 12% over the next year. The US interest rate is 5%.

How much return is required in Canada to offset the currency depreciation?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 14, 2023 03:33 AM

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Longhall Co. has $40 million in excess cash in USD to invest in Canada. The canadian dollar

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To calculate the required return in Canada to offset the currency depreciation we need to consider t... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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