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Longhall Co. has $40 million excess cash in USD to invest in Canada. The Canadian dollar is expected to depreciate 12% o

Posted: Thu May 19, 2022 6:59 am
by answerhappygod
Longhall Co. has $40 million 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 6%. How much return is required
in Canada to offset the currency depreciation? Give your answer in
3 decimal point and do not use percentage.