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3 years ago

Why Corporations Hedge?

Business

1 answer:

trapecia [35]3 years ago

7 0

Answer:

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

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Goodwill adapts its store formats and merchandise plans to match the innovativeness and disposable income of shoppers in nearby

d1i1m1o1n [39]

customers of its boutique store in the haight-ashbury neighborhood of san francisco are more likely to demonstrate greater rates of adoption for trendy fashions

8 0

3 years ago

Suppose a consumer purchased a new television for $1000 2 years ago. Today, that person sold it in her garage sale for $200. How

guajiro [1.7K]

It will not affect the current GDP at all. GDP is a measure of all newly produced goods and services during a year, so 2 years ago the TV's full value would have been included in the GDP, but the sale of the TV as a used good later on would not be counted.

4 0

3 years ago

Describe the effect of each transaction on assets, liabilities, and stockholders' equity.

Aliun [14]

Answer:

Issued Common Stock to Investors in exchange for Cash received from investors

Stockholders Equity = Increase

Assets = Increase

Liabilities = No Effect

Paid Monthly Rent

Assets = Decrease

Stockholders equity = Decrease

Liabilities = No Effect

Received cash from customers when service is performed

Assets = Increase

Stockholders Equity = Increase

Liabilities = No Effect

Billed Customers when service is performed

Assets = Increase

Liabilities = No Effect

Stockholders Equity = Increase

Explanation:

Issued Common Stock to Investors in exchange for Cash received from investors

Stockholders Equity increase due to increase in issue of additional common stock.

Assets increase due to inflow of asset of Cash resulting from the issue.

Paid Monthly Rent

Stockholders equity decrease due to increase in an expense item (Rent) which decreases profits attributable to stockholders.

Assets decrease due to outflow of economic benefits in form of cash.

Received cash from customers when service is performed

Shareholders Equity increase increase due to inflow of economic benefits in form of revenue, which would consequently increase profit attributable to shareholders.

Assets are increasing due to inflow of economic benefits in form of cash.

Billed Customers when service is performed

Assets are increasing due to increase of future economic benefit in form of Accounts Receivable.

Shareholders Equity increase increase due to inflow of economic benefits in form of revenue, which would consequently increase profit attributable to shareholders.

8 0

3 years ago

How are tornadoes formed?

alina1380 [7]

Tornados are formed when warm humid air collides with cold dry air then when the cold air becomes dense and the warmer air rises through the colder air it becomes a updraft then when it hits or touches the ground it become a tornado

5 0

3 years ago

ABC Steel Co. is considering buying a new machine in order to increase its production capacity using new technology. Details abo

stepan [7]

Answer:

payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years

Explanation:

given data

Purchase Cost = $300,000

Savings offered = $62,500 per year

Life of machine = 15 years

to find out

Payback period

solution

first we get here Payback period that is express as

Payback period = purchase cost ÷ savings ...........1

put here value we get

Payback period = $\frac{300000}{62500}$

Payback period = 4.8 years

and here payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years

7 0

3 years ago