For staple merchandise, assortment planning is conducted with the use of a basic stock list

Investors may prefer companies that repurchase their shares instead of paying a cash dividend when:

A. capital gains are taxed at lower rates than dividends. B. capital gains are taxed at the same rate as dividends. C. the company needs more equity to finance capital expenditures.

Sarakose Co. is a U.S. company with sales to Canada amounting to C$5 million. Its cost of materials attributable to the purchase of Canadian goods is C$7 million. Its interest expense on Canadian loans is C$5 million. The dollar value of Sarakose's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of its cash flows would ____ if the Canadian dollar appreciates.

a. increase; increase b. decrease; increase c. decrease; decrease d. increase; decrease e. increase; be unaffected