Which of These Is an Advantage of American Depository Receipts

question 2

Multiple Choice

Which of these is an advantage of American Depository Receipts (ADRs) ?

• A) Investors who buy ADRs pay no currency-conversion fees.
• B) There are no minimum purchase requirements for ADRs.
• C) Companies offer ADRs in the U.S. to appeal to mutual funds.
• D) All of the above.

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Definitions:

Present Value

The value today of a future monetary sum or sequence of cash inflows, calculated with a defined return rate.

Interest Rate

The rate of a loan designated as interest to the borrower, typically represented as an annual percentage of the loan's unpaid balance.

Present Discounted Value

The value of a future amount of money in today's terms, calculated by applying a discount rate to account for time and risk.

Payments For Capital

Funds disbursed to acquire or maintain fixed assets, like equipment or buildings, or to compensate the providers of financial capital.