Rsks of investing in the cement business

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Reference no: EM13745149

Sticksoft Corp., a hypothetical cement manufacturer wants to diversify into the hotels business because it has available cash reserves and its managers want to hedge their risks against a downturn in the cement market. Evaluate if Sticksoft has a compelling reason to enter the hotels industry. Also identify a better business for Sticksoft to diversify into and discuss why. If Sticksoft chooses not to diversify, how best can it help shareholders manage their risks of investing in the cement business?

Reference no: EM13745149

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