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Viktor [21]
1 year ago
13

why might a company want to hedge its balance sheet exposure? what is the paradox associated with hedging balance sheet exposure

?
Business
1 answer:
zaharov [31]1 year ago
3 0

The paradox in hedging balance sheet exposure is that, by agreeing to receive or deliver foreign currency in the future under a forward contract, a transaction exposure is created.

A paradox is a logically self-contradictory announcement or a assertion that runs contrary to at least one's expectation.[1][2] it's far a declaration that, no matter apparently legitimate reasoning from genuine premises, results in a reputedly self-contradictory or a logically unacceptable end.[3][4] A paradox usually entails contradictory-but-interrelated factors that exist simultaneously and persist through the years.[5][6][7] They result in "chronic contradiction among interdependent factors" leading to an enduring "cohesion of opposites".

Learn more about paradox here

brainly.com/question/17731343

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Tobang Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere b
Alex787 [66]

Answer:

The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.

At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.

Explanation:

3 0
3 years ago
Jane Simpson rates low on conscientiousness. Which of the following statements is most likely to be true about Jane?
Pachacha [2.7K]

Answer: d. She will be easily distracted.

Explanation:

When one is said to be conscientious, it means that they are very dedicated to their duty. They value their duty and they want to do it well. A conscientious person is focused on their duty with the aim of fulfilling it to the best of their ability and so are reliable and trustworthy.

If a person is said to be low in conscientiousness, it means that they do not value their duty as well as they should and like Jane Simpson can get easily distracted from said duty.

7 0
3 years ago
Credits are used to record:___________
muminat

Answer:

The correct answer is letter "B": decreases to assets and expenses and increases to liabilities, revenues, and stockholders' equity.

Explanation:

When it comes to accounting book-keeping, a credit is an entry that increases <em>liabilities </em>(amounts owed to third parties) and <em>equities </em>(assets minus liabilities) in their corresponding accounts or decreases <em>assets </em>(resources owned by the company) and <em>expenses </em>(costs of the business operations) accounts.

4 0
3 years ago
Under the Investment Advisers Act of 1940, cash payment to a broker-dealer from an investment adviser in return for client refer
-Dominant- [34]

Answer:

It's A.

Explanation:

4 0
3 years ago
Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need t
Len [333]

Answer: See explanation

Explanation:

Share of ordinary income:

= (Ordinary income - Wages - Depreciation)/2

= (900,000 - 200,000 - 300,000)/2

= 400,000/2

= 200,000

Share of net short term capital gain

= (12,000 - 6,000) × 50%

= 6,000 × 0.5

= 3,000

Share of interest income

= 4000 × 50%

= 4000 × 0.5

= 2000

Share of charitable contribution deduction

= 4000 × 50%

= 4000 × 0.5

= 2000

7 0
3 years ago
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