In what way can hedging reduce the risk of financial, Finance Basics

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In what way can hedging reduce the risk of financial

1. In what way can hedging reduce the risk of financial distress? How might reducing the risk of fi nancial distress increase firm value?

2. Explain how hedging can reduce a firm's tax liability.

3. Why do closely held firms tend to hedge more than firms with diffuse ownership?

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Finance Basics: In what way can hedging reduce the risk of financial

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