1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tamaranim1 [39]
3 years ago
6

How may hedging increase value of a company through: Reducing agency costs; Reducing costs of financial distress; Tax optimizati

on.
Business
1 answer:
yawa3891 [41]3 years ago
3 0

Answer:

Hedging increases value of a company through:

Reducing costs of financial distress.

Explanation:

Hedging is a risk reduction and management strategy, which a company employs to offset or reduce its losses in investments by assuming opposite positions in some related assets. The reduction in risks through hedging results in some reduction in the profitability of the investments, based on the basic understanding of risk-return trade-off.  Hedging strategies are done with derivatives, such as options and futures contracts.

You might be interested in
7. Choose if the product is a Good, a Service, or Both.
Papessa [141]

Answer:

1 buying a bicycle it's a good

2 getting a back message it's a service

3 getting the plumbing fixed in your house it's a service

4 use of a smartphone app it's a service

5 buying a new Ac unit for your house it's a service

6 buying a hamburger it's a good

7 getting your taxes completed by a tax firm it's both

5 0
3 years ago
A country produces only apples and bananas. moving from point a to point b along its production possibilities​ frontier, 5 apple
LenaWriter [7]
The opportunity cost is greater than the one of the apples
7 0
3 years ago
Why might the unemployment rate underestimate the underutilization of labor​ resources? The unemployment rate might underestimat
DaniilM [7]

Answer:

marginally attached staff and​ part-time staff that hope on getting​ full-time jobs

6 0
3 years ago
Explain the role of a good business plan in setting up your business. Why is it an important step
krok68 [10]

Answer:

A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.

Explanation:

It is important to help articulate a strategy for your business. It also provides insight on steps to be taken, resources required for achieving your business goals and a timeline of anticipated results. And help your business prosper and grow.

5 0
3 years ago
Which statement is true about a stock split? Multiple Choice Total shareholders' equity remains the same. Total shareholders' eq
Alex Ar [27]

Answer:

The correct option is total shareholders' equity remains the same

Explanation:

Stock split is about re-denomination of existing shares by splitting for example one share into two whereby the two new shares assume the value of one old share.

It is usually done to boost shares trading by making a share price affordable and within the reach of many potential investors.

All in all, the stockholders' equity remains the same since no cash consideration is paid for stock split

6 0
3 years ago
Other questions:
  • American Italian Pasta Company (AIPC) manufactures several varieties of pasta. On January 1, 2020, AIPC had excess commodity inv
    14·1 answer
  • An annuity makes payments for 50 years with the following payment pattern: $1 paid at the end of the first year, $2 at the end o
    9·1 answer
  • Explain the difference between implicit and explicit costs
    11·1 answer
  • The operators of adult bookstores got together and each agreed to contribute $1,000 to a fund for use in lobbying the city counc
    6·1 answer
  • yeloe corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cos
    13·1 answer
  • Two unrelated women are interested in opening a brokerage account. Each one wants to be able to enter trades in the account, but
    8·1 answer
  • Which of the following represents a positive economic statement?
    15·2 answers
  • Describe how a car be a need for one person and a want for another person
    7·1 answer
  • How does Ingenuity fly on Mars? (20 points)
    6·2 answers
  • When Proctor & Gambol announced that it will be eliminating many of its brands and only keeping the top 70-80% of the brand
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!