For this discussion, you will first examine financial statements for a specific company and then provide a summary of its hedging techniques.
First, review the annual financial statements (Form 10-K) for the company you have selected for your final project. You can either retrieve the statements from the SEC EDGAR Company Filings or directly from the companyâ€™s website (usually listed under â€œInvestor Informationâ€). This task will help prepare you for Milestone Two and will also give your classmates a chance to see which company you are analyzing for your final project.
Next, in your initial post to the discussion, address the following:
- What company have you selected for your final project and what foreign countries does the company do business in?
- What are a couple different hedging techniques/derivative contracts the company is currently using to mitigate its foreign transaction, translation, and economic risks?
- In your own opinion, do you think the company is doing enough to hedge its risk? Explain your reasoning.