Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 06.2004
Abstract
Delta Beverage is facing severe cost-control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers has risen substantially during the past year. The student must decide whether the CFO should hedge aluminum to avoid the risk of violating a loan covenant. The case works well as an introduction to risk management.
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Abstract
Delta Beverage is facing severe cost-control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers has risen substantially during the past year. The student must decide whether the CFO should hedge aluminum to avoid the risk of violating a loan covenant. The case works well as an introduction to risk management.