Question
1.President Shogaki thought this was case of material facts and disclosed those facts to the public. But stock prices dropped sharply due to this disclosure,
1.President Shogaki thought this was case of material facts and disclosed those facts to the public. But stock prices dropped sharply due to this disclosure, and some shareholders did not welcome the disclosure. Did Shogaki make the right decision?
2. Why should a company hedge?
3. Why should a company not hedge?
4. Is the bank that sold this swap responsible?
5. What do you think of the risks in this swap transaction? Is this hedging or speculation? Are there any other problems?
Step by Step Solution
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Step: 1
1 Whether President Shogaki made the right decision depends on the specific details of the case and the context in which the disclosure was made If th...
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Step: 2
Step: 3
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Auditing a business risk appraoch
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
6th Edition
9780324645095, 324645090, 978-0324375589
