The conservation of value principle states that anything that does not increase cash flows does not increase value.
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Q2: Investors demand returns for nondiversifiable risks only.
Q3: Managers should hedge risks in their core
Q4: Firms should engage in share repurchases only
Q5: Financial engineering includes the use of derivatives,structured
Q6: Diversifiable or firm-specific risks,such as the ability
Q8: Because interest expense is tax deductible,share repurchases
Q9: The primary way that financial engineering can
Q10: If one uses free cash flows to
Q11: Changes in accounting techniques that decrease reported
Q12: There are no exceptions to the principle
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