Question
What is NOT a reason a company manages risk? A company may have a comparative advantage in hedging Stabilizing earnings can reduce the present value
What is NOT a reason a company manages risk?
| A company may have a comparative advantage in hedging | ||
| Stabilizing earnings can reduce the present value of taxes | ||
| Debt capacity can be increased by reducing the volatiltiy of cash flows | ||
| Efficient Market throry says it is more efficient for companies to hedge diversifiable risk than for shareholders to do it through diversification |
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
