Which of the following is cited as a good reason for NOT hedging currency exposures?
A) Shareholders are more capable of diversifying risk than management.
B) Currency risk management through hedging does not increase expected cash flows.
C) Hedging activities are often of greater benefit to management than to shareholders.
D) All of the above are cited as reasons NOT to hedge.
Answer: D
Business
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______________ - when a corporation issues shares for less than their fair market value
Fill in the blank(s) with the appropriate word(s).
Business
The present value of a single sum
A) increases as the discount rate decreases. B) decreases as the discount rate decreases. C) increases as the number of discount periods increases. D) increases as the discount rate increases. E) none of the above.
Business