Suppose that Kittle Co, a 0.5.baud MNC that is considering setting up a subsidiary in Singapore. Kittle would like this wbudiary to produce and will guitars locally in Singapore and needs asistance with capital budgeting. The duration of this project is four years Kittie is deliberating between ning parent financing or subsidiary financing when taking out a loan for a large office building for the subsidiary in Singapore In this case, the rate on the loan to the parent is much lower than the rate on the town to the subsidiary then, al else equal, parent finanong will be desirable than subsidiary financing If Kittie elects to use subsidiary financing then, allelse equal, exchange rate ask is likely to be than if it used parent financing Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and yellomstors locally in Singapore and needs assistance with capital budgeting. The duration of this project is four years. Kittle is deliberating between more rent financing or subsidiary financing when taking out a loan for a large office building for the subsidiary in Singapore less hse, if the rate on the loan to the parent is much lower than the rate on the loan to the subsidiary then, all else equal, parent financing will be desirable than subsidiary financing. If Kittle elects to use subsidiary financing then, all else equal, exchange rate risk is likely to be than if it used parent financing Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore and needs assistance with capital budgeting. The duration of this project is four years. Kittle is deliberating between using parent financing or subsidiary financing when taking out a loan for a large office building for the subsidiary in Singapore, In this case, if the rate on the loan to the parent is much lower than the rate on the loan to the higher then, all else equal, parent financing will be desirable than subsidiary financing, lower If Kittle elects to use subsidiary financing then, all else equal, exchange rate nisk is likely to be than if it used parent financing