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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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busyfingers1193

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

The share price of the firm in Singapore dollars is $10.

  • The calculation is as follows:

1 ADR = $20

1 ADR = 3 Shares

So,  

3 Shares =$20

1 share =$20 ÷÷3

1 Singapore dollar =$0. 664

Now  

1$= 1 ÷ 0.664 =1.506

And,  

20$ =[tex]20 \times 1.506 \div 3[/tex]

=10.10

Learn more: https://brainly.com/question/17429689?referrer=searchResults

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