The ADR of a British firm is convertible into 2 shares of stock. The share price of

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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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Entrepreneurial Finance

ISBN: 978-0538478151

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Authors: J . chris leach, Ronald w. melicher

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Posted Date: Feb 27, 2021 08:16 AM

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The ADR of a British firm is convertible into 2 shares of stock. The share price of

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1 The ADR 211130 286 2 The increase in the AD... View the full answer

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