Assume a U.S.-based subsidiary wants to raise $1,000,000 by issuing a bond denominated in Indian rupees (RS). The current exchange rate of the rupee is $.025. Thus, the MNC needs ___________ rupees to obtain the $1,000,000 needed.
A. 50,000,000
B. 20,000
C. 1,000,000
D. 40,000,000
Answer:D
Assume a U.S.-based subsidiary wants to raise $1,000,000 by issuing a bond denominated in Indian rupees (RS). The current exchange rate of the rupee is $.025. Thus, the MNC needs ___________ rupees to obtain the $1,000,000 needed.
A. 50,000,000 B. 20,000 C. 1,000,000 D. 40,000,000