Axetem’s training program includes various training rotations inwhich executive trainees spend some time in various departments toreceive training that is more specific and gain additional internationalmarket experience.This week, you have been assigned to Axetem’s trading department togain additional knowledge about various financing and investment toolsin international trade. One of the characteristics of internationalmarkets is that stocks and bonds cannot simply be traded, but aconvenient way to invest is through using American Depository Receipts(ADRs). Axetem’s trading department invests some of the company’s excesscash in ADRs and foreign-denominated debt securities.  As part of your training, you are presented with the following 2 assignments:Describe the advantages of investing using American Depository Receipts (ADRs).Help Mike Jones, one of Axetem’s investment managers, with the following calculations: In the London market, EEC Inc.’s stock closed at £0.875 per share onThursday, April 1, 2005. EEC trades in ADRs in the over-the-countermarket in the United States. Four underlying EEC shares are packagedinto one ADR. On April 10, 2005, the spot exchange rate for the Britishpound sterling to the U.S. dollar was £0.7366 to $1.00. Determine theno-arbitrage U.S. price of 1 ADR.Mike Jones is also interested in a 10-year floating-rate note (FRN)with coupons referenced to a 6-month London Interbank Offered Rate(LIBOR). The note pays interest on a semiannual basis. Assume that thecurrent 6-month LIBOR is 3%. If the risk premium above LIBOR that theissuer must pay is 1/4 percent, calculate the next period’s coupon rateon a £1,000 face-value FRN.Please list all calculations in detail.