american depository receipts....

Q. A company is listed as an ADR on an American exchange. The ration of shares on the home exchange to ADR shares is 6 for 1. If the ADR earnings per share is $6 what is the EPS for a share listed on the home exchange?

A. $1, treat as if a 6 for 1 stock split occurred.

can someone explain this question and answer to me? it is from Emory's MBA page

http://www.bus.emory.edu/fin/mba_finance_intervie…

 

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