Answer:
The correct answer is C. hedging.
Explanation:
Coverage, in finance, is the set of operations aimed at canceling or reducing the risk of a financial asset or liability in the possession of a company or an individual. Funds created for this purpose are called hedge funds.
The hedging operations consist of the acquisition or sale of a financial asset that is correlated with the element on which the coverage is to be established. Said acquisition or sale may be of shares, indices, interest rates, options, futures, etc.
Answer:
$25
Explanation:
The computation of the price of the preferred stock is shown below:
Price of the preferred stock = Annual dividend ÷ expected rate of return
= $3 ÷ 12%
= $25 per share
Simply we divide the annual dividend by the expected rate of return so that the correct price of preferred stock can be computed
All other information which is given is not relevant. Hence, ignored it
This is the answer and the same is not provided in the given options
Answer:
Dave is taxed on $109,500 of plumbing income this year.
Explanation:
Dave is the plumber who worked and got paid $109,500 during the year so he should be taxed for it. The fact that Dave made his clients make their checks payable to his son Steve doesn't change the fact that Steve didn't perform any work and the money is part of Dave gross income.
E.g. Dave could have asked a client to write a check payable to a car dealer in order to pay for maintenance services performed on Dave's car, but it would still be Dave's income.
Answer:
The correct answer is letter "B": Accounting centralizes and organizes processes.
Explanation:
Managerial Accounting is internally-based accounting that helps managers measure the results of their decisions. This is in contrast to financial accounting which emphasizes in more general, higher-level financial results of the company.
One common managerial accounting tool in determining the profit margin in each of the company's products. This information helps managers set product prices and ensure they are making appropriate profit margins.
Answer:
Net Capital Spending = $72,000
Explanation:
Formula for Net capital Spending:
Net Capital Spending = Net Increase in Fixed Asset + Depreciation
Net Capital Spending = ( $243,600 - $234,100 ) + $62,500
Net Capital Spending = $9,500 + $62,500
Net Capital Spending = $72,000
Sale of asset is already accounted for in the ending net balance of fixed assets.
