Which of the following statement is TRUE? O An unsponsored ADR may be initiated without the approval of the foreign firm with the underlying stock. O ADRs are considered an effective way for firms to improve the liquidity of their stock, especially if the home market is small and illiquid. Answer: One of the benefits of investing in Global Registered Shares (GRS) is that GRS allow to invest in foreign companies without foreign exchange risk Question 8 1 pts A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 6% interest rate or issue foreign bond in Germany denominated in Euro at 3%. The Euro is expected to appreciate by 2% in the following year. What is the best alternative and how much is the effective dollar cost? O Borrow dollar, and the effective dollar cost is approximately 4% Borrow Euro, and the effective dollar cost is approximately 5% Borrow Euro, and the effective dollar cost is approximately 7% O Borrow dollar, and the effective dollar cost is approximately 5%