false Hedging, or lowering risk, is the same as increasing the firm's value or return.
<h3>How might currency risk be reduced through hedging?</h3>
hedging to reduce the risk of currency loss. Foreign exchange risk is an unavoidable reality for businesses doing business in other countries, although hedging can help reduce the risk. By taking a contrary position in a comparable asset, the hedging technique seeks to reduce risks associated with financial assets.
<h3>What does hedge mean?</h3>
A approach for reducing the risks associated with financial assets is hedging. It uses market tactics or financial instruments to reduce the risk of any unfavorable price changes. To put it another way, investors use a trade in another investment to protect one investment.
To know more about hedging, or reducing risk, visit:-
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We are given with the data: A = <span>$6,951.20 per semi-annum that is $13902.4 per annum, i equal to 1.75% compounded semi-annually, and asked for P or the present worth to maintain the withdrawal for 15 years.
the formula to be used is attached in the file (third one). substitute the i = 0.0175, n = 30, A = </span>$13902.4 and get P.
Answer:
$7,120
Explanation:
Given that,
Assets = $85,900
Liabilities = $13,500
Fair value of assets = $90,500
Fair value of its liabilities = $13,500
Amount paid to acquire all of its assets and liabilities = $84,120
Net assets:
= Fair value of assets - Fair value of its liabilities
= $90,500 - $13,500
= $77,000
Goodwill = Purchase consideration - Net assets
= $84,120 - $77,000
= $7,120
Answer:
interest expense 3,000 debit
interest payable 3000 credit
Explanation:
We will recognize the accrued interest for the period Nov 1st to Dec 31th
principal x rate x time
120,000 x 11%/12 x 3 months = 3,000
We divide the rate by 12 as there is express as annual rate and we need to match with time, which is months.
The entry will recognize interest expense for 3,000
and interest payable for 3,000
Answer:
A.
Explanation:
Microprudential regulations refers to making sure that the balance sheets or "books" of individual institutions are robust to shocks. Meaning that the regulators that usually engage in this are focusing on the safety and soundness of each customer of a financial institution, by making sure the institutions do not close and the customers lose their money.
