The accounting equation may be expressed as

g A decrease in the basis will __________ a long hedge and __________ a short hedger. Group of answer choices hurt; hurt hurt; b

alekssr [168]

Answer:

1. hurt

2. benefit

Explanation:

Given that a contract and an asset are to be converted in cash early, this implies that, basis risk exists and futures price and spot price should not move in lockstep before delivery date. However, a reduction in the basis will then hurt the long hedger and benefit the short hedger.

Hence, considering the nature of the hypothetical situation, a decrease in the basis will HURT a long hedge and BENEFIT a short hedge.

7 0

4 years ago

Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi

irina1246 [14]

Answer:

Yes, it will affect it.

Explanation:

The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.

The three criteria or tiers that determines how much to deduct as DRD are as follows:

1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.

2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.

3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.

Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.

4 0

3 years ago

A customer has requested that Lewelling Corporation fill a special order for 9,000 units of product S47 for $20.50 a unit. While

bonufazy [111]

Answer:

$4,500

Explanation:

The computation of the annual financial advantage (disadvantage) for the company is shown below:

Sales (9,000 units × 20.50) $184,500

Less: Variable costs:

Direct materials (9,000 units × $3.10) -$27,900

Direct labor (9,000 units × $1.50) -$13,500

Variable manufacturing overhead (9,000 units × $6.40) $57,600

Increase in variable costs (9,000 units × $5) -$45,000

Less: Investment in special molds -$36,000

Financial advantage $4,500

We simply deduct the all cost from the sales so that the financial advantage could come

5 0

4 years ago

________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services

Ainat [17]

Answer:

Up selling

Explanation:

Up selling is a sales strategy. It is an attempt at making more sales using persuasion. It is different from cross-selling in that the customer is not asked to purchase a new item but only purchase a more expensive product or even simply an add-on to the already bought product he/she has.

While it is allowed in terms of ethical consideration to persuade the customer to purchase through up selling, it however becomes unethical when the sales person starts to push the sale. What is meant by pushing the sales refer to the use of half truth or falsehood to literally trick the customer into getting the product. This is an ethical issue and be tried in a capable court of law

7 0

4 years ago

Read 2 more answers

Elon is a manager who organizes his department into teams at the beginning of September. By November, he worries because the tea

Diano4ka-milaya [45]

My best advice to give Elon is to be patient because the teams are in the storming stage.

<h3>What is a storming stage?</h3>

A storming stage is characterized by employee starting to push against the established boundaries which could led to Conflict

Because the team are in storming stage, the manager need to give them time to reach the norming and performing stages.

In conclusion, my personal best advice is to Elon is to be patient because the teams are in the storming stage