Palk Corporation has a foreign subsidiary located in a country experiencing high rates of inflation.Information concerning this country's inflation rate experience is given below. The inflation rate that is used in determining if the subsidiary is operating in a highly inflationary economy is
A)37.50%.
B)90.58%.
C)133.33%.
D)350.00%.

Question

Palk Corporation has a foreign subsidiary located in a country experiencing high rates of inflation.Information concerning this country's inflation rate experience is given below.  The inflation rate that is used in determining if the subsidiary is operating in a highly inflationary economy is
A)37.50%. 
B)90.58%. 
C)133.33%. 
D)350.00%.

Quizplus · Accepted Answer

C)[(210 - 90)/90] × 100% = 133%

Palk Corporation Has a Foreign Subsidiary Located in a Country