Question:
Part A:
Justify and criticize the usual assumption made in Financial Management literature that the objective of a firm is to maximize the wealth of its shareholders. You are not expected in your answer to consider the problems of how this wealth is to be measured.
Part B:
X Co.Ltd., a Mauritian Company has to make payment of 3million US Dollar after 6 months against import of plant and machinery. What are the different alternatives to hedge against this foreign currency exposure? Give supporting explanations.