Valuation Challenge: 'Swapping out'

Contestant: Susan Mangiero, Managing member, Business Valuation Analytics Member, National Association of Certified Valuation Analysts Not being too familiar with derivative instrument pricing and default risk analysis, a company hires an expert to investigate whether the swaps reflect a hedge versus a market bet and to further assess how the company should adjust the valuation of its equity stake. What does the expert need to look at and how should she arrive at an appropriate conclusion?