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Viktor [21]
10 months 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]10 months 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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Which of the following would not be reported as current liabilities on the balance sheet?
olga55 [171]
D. Accounts receivable
6 0
1 year ago
The production possibilities curve illustrates the basic principle that: Group of answer choices A) an economy will automaticall
ICE Princess25 [194]

Answer:

The correct answer is option C.

Explanation:

The production possibility curve shows the maximum possible bundle of two goods that can be produced using all the available resources and state of technology.

Since the resources are scarce, when we produce more of one good, we need to sacrifice more and more of the other good.

If all the resources in the economy are fully employed then it is not possible to increase the production of one good without decreasing the production of the other.

The economy can thus produce either on the production possibility curve or below it but not above it.

3 0
3 years ago
Mr. West wishes to purchase a condominium for $240,000 in cash upon his retirement 10 years from now. How much should he deposit
Oduvanchick [21]

Answer:

He should deposit $1,744.37 at the end of each month.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the of condominium = $240,000

M = Monthly payment = ?

r = monthly interest rate = 2.7% / 12 = 0.027 / 12 = 0.00225

n = number of months = 10 years * 12 months = 120

Substituting the values into equation (1) and solve for M, we have:

$240,000 = M * (((1 + 0.00225)^120 - 1) / 0.00225)

$240,000 = M * 137.585424499073

M = $240,000 / 137.585424499073

M = $1,744.37

Therefore, he should deposit $1,744.37 at the end of each month.

8 0
3 years ago
The skills, tools, and processes used to plan, execute, and control the elements of a project are a part of __________.
Musya8 [376]

Answer:

success

Explanation:

3 0
3 years ago
The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
kozerog [31]

Answer:

Controllable variance

Explanation:

The controllable variance is the combination of the variable overhead, fixed overhead spending variance and together with this, the variable overhead efficiency variance is also involved

Hence, as per the given situation, the controllable variance is to be considered

Therefore the above represents the answer

7 0
2 years ago
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