The ADR of a British firm is convertible into 2 shares of stock. The share price of
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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 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?
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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