Ivey Publishing
Westwood Plastics Inc.
Product Number:
9B06N017
Publication Date:
10/12/2006
Revised Date:
05/02/2013
Length:
9 pages (3 pages of text)
Product Type:
Case (Gen Exp)
Source:
Ivey
The vice-president of finance for Westwood Plastics, Inc. (Westwood), wants to assess the impact of the possibility of a weakening Canadian dollar on the company's financial health given its exposure to the Euro. Because Westwood is required by a loan covenant to generate a minimum level of pre-tax earnings, management is concerned about the possible impact of the exchange rate volatility on projected income and cash flows. The vice-president of finance is considering both an option and a forward strategy to minimize the foreign exchange risk Westwood is facing. She must decide how to use financial instruments to hedge the risk.
Issues:
Disciplines:
Entrepreneurship,  Finance,  International
Industries:
Manufacturing
Setting:
Canada, Medium, 2006
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Supplements: 7B06N017 (149 KB)
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