3 years ago

Why Corporations Hedge?

1 answer:

7 0

Answer:

<em>A hedge is an investment that is made with the intention of reducing the risk of adverse price movements in an asset. </em><em>Managers hedge because they are undiversified</em>

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jayda started a corporation that creates software products for clients. which statement correctly reflects jayde's role in the c

HACTEHA [7]

Answer:

good for herlelellelelel

4 0

3 years ago

Read 2 more answers

During August, the Filtering Department of Speedwell, Inc. Had a beginning Work-IN Process Inventory balance of 160 units with c

Veseljchak [2.6K]

Answer: 320 units

Explanation:

The equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO) method goes thus:

Total units completed= 160 units + 290 units = 450 units

Beginning WIP = 160 units

Ending WIP = 30 units

Equivalent units of production:

= 450 + 30 - 160

= 480 - 160

= 320 units

8 0

3 years ago

The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired ra

Julli [10]

Answer:

c. 1.14

Explanation:

Year Cash Flow PV Factor 10% PV of Cash flows

($) ($)

Year 1 180,000 0.909 163,620

Year 2 120,000 0.826 99,120

Year 3 100,000 0.751 75,100

Year 4 90,000 0.683 61,470

Year 5 90,000 0.621 55,890

Total = 455,200

Initial cash outflow = $400,000

Cash inflow = $455,200

So, we can calculate the present value index by using following formula,

Present value index = Cash inflow ÷ Cash outflow

= $455,200 ÷ $400,000

= 1.14

4 0

3 years ago

15. If, in the economy described, government spending increases by $200 million, what will be the associated change in equilibri

iris [78.8K]

Answer:

$200 (million)

Explanation:

If the government spending increases by $200 million, then associated change in equilibrium income will be $ 200 million, assuming that Marginal Propensity to Consume (MPC) is 1

6 0

3 years ago

If inflation is increasing at 2.4 percent per year, and your salary increases at the same rate, how long will it take your salar

Oksana_A [137]

Answer:

it take 29.23 years, my salary to double.

Explanation:

To make the salary double I have to increase the value of salary by 100%. If inflation rate is 2.4 percent per year and salary increase the same rate the time period to make it double can be calculated as follow.

As every year 2.4% has compounding effect, so we will use compounding formula to solve this problem.

Target value = Existing value ( 1 + growth rate )^time period

200% = 100% ( 1 + 2.4% )^n

2 = 1 ( 1 + 0.024 )^n

2 = 1 ( 1.024 )^n

2 = 1.024^n

Taking log on both sides to solve the n

Log 2 = n Log 1.024

n = Log 2 / Log 1.024

n = 29.23 years

I will take 29.23 year to double the salary

5 0

4 years ago