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Firms outside of the US can access equity financing in the US via the use of American depository receipts (ADRs). ADRS represent bundles of
Firms outside of the US can access equity financing in the US via the use of American depository receipts (ADRs). ADRS represent bundles of the foreign firm's stock, and the use of these certificates can help to avoid some of the costs of meeting the disclosure requirements imposed by SOX and other acts. Suppose a Swedish company, Ikreal Co., issues ADRS in United States. The price of a share of Ikreal stock is 193 krona, while the spot rate for krona is $0.17 per krona. The price of the Ikreal ADR is
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
