Question: Part 1 -Hedging, Diversification, and Debt Valuation Background: You are a consultant advising the CEO of a medium-sized energy company located in the United States

Part 1 -Hedging, Diversification, and Debt Valuation Background: You are a consultant advising the CEO of a medium-sized energy company located in the United States (so it mostly transacts in US dollars). The company's activities include drilling for oil and selling crude oil to refineries. The firm's CEO is wondering if she should diversify her company by acquiring a minority ownership stake in a company that manages oil pipelines (which transport oil once it is extracted)

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