If the appreciates to 085 what is the impact on the firms


A US firm's UK subsidiary pays £100,000 in yearly interest expense. The US income tax rate is 35 percent and the spot exchange rate is £0.75/$. If the $ appreciates to £0.85/$, what is the impact on the firm's interest expense after taxes?

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Financial Management: If the appreciates to 085 what is the impact on the firms
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