What is the difference between a GDR and a GRS?
What will be an ideal response?
A GDR, like an ADR, represents negotiable claims on home-market ordinary shares (in bearer or registered form) and is issued by a depositary bank. Settlement of cross-border trades takes place daily through ADR issuances or cancellations ("conversions") conducted by the depositary bank, and there are fees for such transactions. Finally, the depositary bank maintains ownership records and processes corporate actions. Global registered shares (GRSs) trade simultaneously in different markets around the world, in different currencies, with the shares being completely fungible across markets. They do not require the intervention of a depositary bank, but of course, shares can then also not be bundled or unbundled to facilitate trading in different markets. Finally, share ownership is more direct with a GRS than with a GDR. Holding a GRS gives investors the same voting privileges, rights to receive dividends, and so forth, as a regular shareholder has, whereas the depositary intermediary may impose certain restrictions.
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The economic income in euros for the Fontenot Company is:
Linda Pyle is head of analyst recruiting for PPA Securities. She has been very frustrated by the number of job applicants who, in spite of their stellar pedigrees, seem to have little understanding of basic financial concepts. Pyle has written a set of conceptual questions and simple problems for the human resources department to use to screen for the better candidates in the applicant pool. A few of her corporate finance questions and problems are given below. Concept 1. “A company invests in depreciable assets, financed partly by issuing fixedrate bonds. If inflation is lower than expected, the value of the real tax savings from depreciation and the value of the real after-tax interest expense are both reduced.” Concept 2. “Sensitivity analysis and scenario analysis are useful tools for estimating the impact on a project’s NPV of changing the value of one capital budgeting input variable at a time.” Concept 3. “When comparing two mutually exclusive projects with unequal lives, the IRR is a good approach for choosing the better project because it does not require equal lives.” Chapter 2 Capital Budgeting 19 part-i-02 13 January 2012; 10:13:21 Concept 4. “Project-specific betas should be used instead of company betas whenever the risk of the project differs from that of the company.” Problem. “Fontenot Company is investing h100 in a project that is being depreciated straight-line to zero over a two-year life with no salvage value. The project will generate earnings before interest and taxes of h50 each year for two years. Fontenot’s weighted average cost of capital and required rate of return for the project are both 12 percent, and its tax rate is 30 percent.” A. 17.24 in year one and 9.11 in year two. B. 17.76 in year one and 24.89 in year two. C. 24.89 in year one and 17.76 in year two.
Southwest Airlines uses a ________ to target customers who could not previously afford air travel
A) pricing strategy B) market penetration strategy C) marketing metric D) distribution strategy E) mission statement