Leveraged Buyout (LBO) of BCE.: Hedging Security Risk Case Solution

In 2007, a group analyst derivatives investment banks Grenfell & Co. to develop a hedging strategy of Providence Equity Partners (Providence) at Bell Canada Enterprises (BCE Inc.) were invited. Providence was founded in the United States and any strategy carries a significant risk of exchange rate, due to dollar conversion yields. The analyst should consider several strategies for long-term coverage Grenfell & Co. can recommend Providence. Vice-President had asked that creates a hedging strategy first assuming an IRR of 25 percent for investment and performance, based on two results at the end of the investment (the investment horizon = five years): IRR of zero percent and an IRR of 25 percent.
by
Colette Southam
Ahsen Ali Amir,
Samir Meghji
Source: Ivey Publishing
7 pages.
Date Posted: January 6, 2009. Prod #: 908N23-PDF-ENG
The leveraged buyout (LBO) of BCE. Risk case cover security solutions

Leveraged Buyout (LBO) of BCE.: Hedging Security Risk Case Solution
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