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27 August, 17:32

Assume that the spot rate of the singaproe dollar is $.664. The ADR of a Singapore firm is convertibe into 3 shares of stock. The price of an ADRis $20. What is the share price of the firm in Singapore dollars

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  1. 27 August, 17:37
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    Answer: 10

    Explanation:

    1 ADR = $20

    1 ADR = 3 Shares

    Hence,

    3 Shares = $20

    1 share = $20/3

    1 Singapore dollar = $0. 664

    1$ = 1/0.664 = 1.506

    20$ = 20 x 1.506 / 3

    =10.10
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