In 2011 Fortune magazine listed Royal Dutch Shell as the world’s second largest corporation when ranked on sales and tenth largest when ranked on market value. Shell has multiple forms of common stock. It offers class A and class B shares. Class A shares pay cash dividends in euros, unless the shareholder elects otherwise. Class B shares pay dividends in pounds sterling (UK currency) unless the shareholder elects otherwise. In addition, for U.S. shareholders, Shell provides ADRs (American Depository Receipts), which pay dividends in U.S. dollars.
1. Consider why a company would choose to create multiple classes of common stock.
2. Why would a European-based integrated petroleum company present its IFRS financial statements in U.S. dollars as the reporting currency?

  • CreatedFebruary 20, 2015
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