View Full Version : Task 3
09-25-2011, 04:21 PM
Does anyone know how the existence of taxes influence the decision to hedge?
04-18-2013, 08:00 PM
Perhaps you could raise additional capital (debt) to fund the hedging costs?
04-22-2013, 01:27 PM
My two cents: Interest paid on debt is tax deductible, so raising debt vs raising equity is more cost effective from a tax standpoint. Loan payments are certain, but cash flows from the business are not. Hedging may help to mitigate the uncertainty of the cash flows
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