Intuitively explain why corporate actions to reduce variability in cash flows may be redundant from the...
Intuitively explain why corporate actions to reduce variability in cash flows may be redundant from the perspective of diversified shareholders.
Homework Answers
Diversified shareholders have variabilities in cash flows because of the various sources and currencies they use . Hence even if the organization want to reduce this variability, if the organization is a global one the variation is inevitable. Therefore corporate actions to reduce variability in cash flows may be redundant from the perspective of diversified shareholders whose transactions are different and will have variation.
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Intuitively explain why corporate actions to reduce variability
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