In the real world, corporate hedging policy can change expected future cash flows but is unlikely to reduce the cost of debt.
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Q7: If financial markets are informationally efficient, then
Q8: In perfect financial markets, corporate hedging policy
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Q13: Corporate hedging of business risk unambiguously increases
Q14: A call option is an option to
Q15: Perfect financial markets are a necessary condition
Q16: If hedging currency risk is to add
Q17: Real-world financial markets are perfect markets.
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