https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png 0 0 milton https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png milton2020-07-08 00:29:282020-07-08 00:29:28Your team has just been appointed to advice and oversee the Finance Department of a large U.K.-based
Your team has just been appointed to advice and oversee the Finance Department of a large U.K.-based company (which is either HSBC, TalkTalk or Eon â€“ you decide). Upon arrival, you notice that your predecessor had not really been up-to-date with respect to recent financial innovations. For example, members of the Department tell you that he had a general distrust towards any derivative instruments, and therefore never hedged any existing exposures. In addition, he argued that the firmâ€™s cost of capital could be determined through considering how the firmâ€™s returns commove with the FTSE 500â€™s returns.