Assume you have just been hired as a financial analyst by Tennessee Sunshine Inc., a midsized Tennessee
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To begin, you gathered some outside materials on derivatives and corporate risk management and used these materials to draft a list of pertinent questions that need to be answered. In fact, one possible approach to the paper is to use a question-and-answer format. Now that the questions have been drafted, you have to develop the answers.
Why might stockholders be indifferent whether or not a firm reduces the volatility of its cash flows?
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