Suppose That the Value of a Firm Increases When the Euro

question 29

Multiple Choice

Suppose that the value of a firm increases when the euro strengthens relative to the dollar,an appropriate hedge would be to

• A) find another currency that is highly correlated to sell forward.
• B) buy euros forward.
• C) liquidate euro liabilities.
• D) convert some of the firm's debt into euros.

---

Definitions:

Product Departmentalization

Product departmentalization is an organizational structure method that groups job positions and divisions within a company based on the products or product lines they focus on.

Decision Making

Decision making is the cognitive process of selecting a course of action from multiple alternatives, often involving elements of judgment, evaluation, and analysis.