In 1989, Jaguar Plc, an English company, was listed on the London SEAQ and on NASDAQ.

In 1989, Jaguar Plc, an English company, was listed on the London SEAQ and on NASDAQ. At the time, one-fourth of Jaguar common stock was held in the form of American Deposit Receipts (ADRs) quoted on NASDAQ. Under U.K. accounting principles, Jaguar reported a 1988 net income (before extraordinary items) of £61 million, a decrease of 27% from 1987 net income. Under U.S. generally accepted accounting principles (GAAP), Jaguar reported a 1988 net income (before extraordinary items) of £113 million, an increase of 89% over the comparable figure for 1987. What would your reaction be as an investor?