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A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutch stock exchange. The

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A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutch stock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the U.S. market opens, the euro is worth $1.10. Thus, the price of the ADR should be: 16.50 euros The Mexican firms, Company U and Company M, each issue bonds denominated in USD. Company U sells all of its products in the US in USD. Company M sells all of its products in Mexico in pesos. If the peso weakens, which of the following is true, all else equal: Neither company needs to worry because bondholdess, riot the companies, take the currency risk after the bonds are issued When financing a plant, which of the following should be considered Local interest rates vs, the Iocal return on the plant A U.S. firm recelves a large amount of revenues in Swiss francs from exporting goods to Switzerland. It has no other business outside the United States. It could best reduce its exposure to exchange rate risk by: purchasing 5 wiss franc- denominated bonds

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