Question
The ADR of a British firm is convertible into 2 shares of stock. The share price of the firm was 11 pounds when the British
The ADR of a British firm is convertible into 2 shares of stock. The share price of the firm was 11 pounds when the British market closed. When the U.S. market opens, the pound is worth $1.30.
(1) Calculate the price of the ADR.
(2) If the stock price remains the same in Britain, what would explain an increase in the price of the ADR?
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1 The ADR 211130 286 2 The increase in the AD...
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
