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3 years ago

Why Corporations Hedge?

Business

1 answer:

trapecia [35]3 years ago

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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1.9 Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the fol

KIM [24]

Base on the question which ask to compute the following ask in the following question and in my further computation, the answer would be the following.
A. 2.5 tire labors per labor hour
B. 0.025 tires per dollar input
C. 12%
I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarification about the said question

4 0

3 years ago

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor

Maru [420]

By using the ceteris paribus assumption, Taylor is holding the

holding all costs of production other than the wage rate constant

not considering retail price of laptop computers

<h3>What is ceteris paribus?</h3>

Ceteris paribus is a Latin phrase used in economics that means all other things being equal in English. It is used when studying the effect of one variable on another variable to mean that other variables that can affect the variable being studied is assumed to not change.

When Taylor is analyzing the effect of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, he is assuming that other factors that would affect the supply of laptops are assumed to be constant.

The other factors that might affect the supply of laptop computers include:

cost of production
retail price of laptops

Here is the complete question:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Select the two correct answers below.

Select all that apply:

holding the supply of laptop computers constant

holding all costs of production other than the wage rate constant

holding wage rates constant

not considering retail price of laptop computers

To learn more about ceteris paribus, please check: brainly.com/question/13864080

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7 0

2 years ago

Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p

Helga [31]

Answer:

Explanation:

nominal interest rate = real interest rate + expected inflation rate

nominal interest rate = 5% + 2% = 7%

Usually the nominal interest rate has four major components:

real interest rate: the net interest rate received by a lender or an investor
inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
credit risk: possibility of the borrower defaulting the loan

7 0

3 years ago

A _________ must provide the new business with the opportunity to make money in excess of the competition.

taurus [48]

A <u>competitive advantage </u>must provide the new business with the opportunity to make money in excess of the competition.

<h3>What is competitve advantage?</h3>

Competitive advantage refers to the factors that allow a company to produce goods or services better or at a lower cost than its competitors. These factors allow the production unit to generate more revenue or higher profit margins than its competitors in the market. Competitive advantage is due to many factors including cost structure, brand image, product quality provided, distribution network, intellectual property and customer service.

Competitive advantage is what makes an entity's products or services more attractive to customers than any other competitor.

Competitive advantage can be divided into comparative advantage and differential advantage.

To learn more about competitive advantage from given link

brainly.com/question/26514848

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8 0

2 years ago

Cost of Units Completed and in Process

MA_775_DIABLO [31]

Answer: Costs of units started and completed: you will take the equivalent units calculated for units started and completed x the cost per equivalent unit for materials, labor and overhead (or conversion). The sum of these 3 will be the cost of units completed and transferred which is also known as cost of goods manufactured

Explanation:

8 0

3 years ago