Discuss the reasons why a firm should hedge. If a firm uses futures contracts to construct a hedge, what particular concerns should the firm address?

Answers

Answer 1

A firm should hedge to mitigate the risk of adverse price movements in the market.

By hedging, a firm can secure a fixed price for its products or inputs and protect its profitability. Additionally, hedging can improve a firm's financial stability, increase investor confidence, and allow for better planning and budgeting. If a firm uses futures contracts to construct a hedge, it should address several concerns.

These include understanding the contract specifications and settlement procedures, monitoring the market to ensure the hedge remains effective, and managing margin requirements and potential losses. The firm should also consider the counterparty risk associated with the futures exchange and develop a risk management strategy for any unforeseen events that could impact the hedge.

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Related Questions

____________ is a key to success in most occupations and one of the most important skills needed in the corporate environment.
a. Effective listening
b. Effective hearing
c. Effective speaking
d. Effective planning

Answers

Option d. Effective planning is a key/way to success in most occupations and one of the most important skills needed in the corporate environment.

It is crucial that business professionals across all levels and sectors comprehend the fundamental ideas of the industry. Business professionals must develop certain abilities for this reason in order to handle the given resources best and accomplish a particular goal.

Effective listening and hearing: Communication is the cornerstone of every workplace because it helps teams work together to achieve organisational goals. It aids in achieving success in both the professional and personal spheres of life. A person who has strong communication abilities is more adept at assessing individuals and circumstances. One of the most important parts of communication is effective listening. Understanding and decoding the true meaning of the message that has been delivered is just as important as hearing what is being spoken.

Effective speaking: The foundation of communication is effective speaking and conversation. Effective speaking refers to the speaker's capacity to deliver the message in a way that will be heard, comprehended, and appropriately acted upon.

Effective planning is all about being able to handle the existing resources in the best way possible in order to achieve a goal. In order to determine what has to be accomplished and the best approach to do so, this is the most crucial talent that is necessary in the majority of jobs and corporate environments. To complete every task without error, this great skill is necessary at every level. Setting goals and deadlines, creating priorities, identifying the most important tasks, making decisions as a team, and other skills are all part of effective planning.

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As an importer of clothing, would you rather have your products sold by a general merchandise retailer or a specialty store? Why?

Answers

Answer:

Specialty store

Explanation:

what will be the credit and debit

what will be the credit and debit

Answers

A credit card is money the bank lets you borrow A debit card is money you already have

which of these transactions types increase how much you owe the credit card company

Answers

Answer:

hope it is helpful to you

which of these transactions types increase how much you owe the credit card company

QUESTION 1/10
A loss is when:
Ce
A. Revenue is greater than expenses.
C. Revenue is equal to expenses.
B. Revenue is less than expenses.
D. None of the above.

Answers

Answer:

B. Revenue is less than expenses

Explanation:

Business loss is a condition that arises when a business fails to earn enough income to pay all of its operating expenditures. A business loss might result from routine business operations or from an unusual occurrence that disrupts business operations. A business loss is recorded in an income statement by auditors. A typical operational loss occurs when a corporation loses more money than it earns within a certain time.

CEOs who lack technical skills may jeopardize an entire organization.
A. True
B. False

Answers

The statement "CEOs who lack technical skills may jeopardize an entire organization" can be considered as true.

Although technical skills aren't the only skills a CEO needs, they are an integral part of understanding and managing a modern organization effectively.

In the digital age, CEOs need a certain level of technical proficiency to make informed decisions about technological investments, cybersecurity, and digital strategy. Moreover, technical skills can help CEOs understand their product or service more deeply, connect with their technical team, and predict future industry trends. However, CEOs don't need to be technical experts. Their role is more about strategic oversight and they can hire technical experts for in-depth understanding. But a complete lack of technical knowledge can put the organization at risk if the CEO fails to make informed decisions in an increasingly digital business environment.

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S Total cost-Process B Total cost-Process C Process A V₁ Process B Volume Process C This activity supports Module Objective 3, and Learning Outcome 3. Question 7 To answer this question, refer to the crossover chart. For high volume production process, Process A would most likely be the best option. True O Fale Total cost-Process A $ Process A V₁ Process B Total cost-Process A V₂ Total cost-Process B Total cost-Process C Process C Volume

Answers

Process A would most likely be the best option for high volume production based on the crossover chart.

The crossover chart compares the total costs of different processes at various production volumes. It helps identify the point at which the total costs of two processes intersect, indicating when one process becomes more cost-effective than another. In this case, for high-volume production, the total cost of Process A is lower than that of Process B and Process C. Therefore, selecting Process A would be the most cost-effective option. By considering the crossover chart, companies can make informed decisions about process selection and optimize their production costs.

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have u tried edgenuity

Answers

Answer:

No, I do odyssey ware

Explanation:

Answer:

yea but I wouldn't mind burning it...

Explanation:

Todd let his 10-year-old daughter, Julie, drive the family car. While she was driving, she turned her head to say something to her
friend in the back seat, and swerved off the road. The car hit and destroyed a mailbox and damaged a fence. Who is liable for the
damages to the property?

Answers

Answer:

Todd as her dad is responsible

1. Suppose we have obtained the following regression results: ý = 12 - 6x +0.5(Male x x) + 3Male - 2Rural + 1(Rural x Male) where Male is a dummy variable that takes one for males and zero for females and similarly Rural takes one if individual lives in a rural area and zero if urban. (a) What is the equation for a female that lives in a rural area? (b) What is the equation for a male that lives in an urban area? (c) What coefficient estimates would we get if we estimated the following model instead: y = Bo+3₁x+3₂(Femalexx)+B3Female+34Urban+35(Urbanx Female) + u where Female takes a value one for females and zero for males and Urban takes a value one if individual lives in an urban area and zero if rural? (d) Using the model in part a) explain how you would test the hypothe- sis that there is no differences across gender (while still allowing for differences across regions) in the relationship between y and x in the two areas, that is, explain how to do a Chow Test. Describe all the steps in performing this test, the hypothesis being tested, the models, the regressions you need to do, the test statistic used and how to get the corresponding critical value.

Answers

ý = 12 - 2Rural. ý = 12 + 0.5 + 3. Coefficient estimates would remain the same as in the original model. Perform separate regressions for rural and urban areas, calculate SSR, and use Chow Test statistic for hypothesis testing.

To test the hypothesis of no differences across gender in the relationship between y and x in the two areas, we would perform separate regressions for rural and urban areas. Then, calculate the sum of squared residuals (SSR) for each regression. The Chow Test statistic, which compares the SSR from the separate regressions to the SSR from the combined regression, can be used to test the hypothesis. The critical value for the test can be obtained from the F-distribution table. If we estimate the model y = Bo + 3₁x + 3₂(Femalexx) + B3Female + 34Urban + 35(Urbanx Female) + u, the coefficient estimates would remain the same as in the original model, as the coefficients represent the same relationships between the variables.

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Which account would you choose if you wanted the one that provided the easiest access to your money?

Answers

For your daily transactional needs, a checking account provides quick access to your money and aids in keeping it safe. Debit cards and checks are frequently accepted by customers when making purchases or paying bills.

Which account type is better for saving money?

High-yield savings accounts offer a higher APY than conventional savings accounts and are often offered at internet banks, cyber banks, and online credit unions. To maximize the growth of your money, this is one of the greatest types of savings accounts.

What kind of bank account is the easiest?

One of the most basic sorts of bank accounts is a savings account. It enables you to securely keep cash and profit from interest on your funds. Savings accounts generate interest rather than paying fees..

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Bond, the owner of cineplex, trusts dex to manage the theater’s daily cash flow. one night, without bond’s knowledge or consent, dex takes and keeps $1,000 from the receipts. This is most likely?

Answers

This is most likely the case of Embezzlement.

Embezzlement  refers to a white-collar crime in which an individual or entity plays fraud and misappropriation the assets entrusted to them. Though the assets are acquired lawfully, the use of the same is for unintended purposes marking it as embezzlement. It is a clear breach of  duties.

Embezzlement takes place when a person intentionally uses funds for a different purpose than they were intended to be used.The embezzler has permission to handle an asset in a certain way, but not to take it.

Embezzlers might create bills and receipts for activities that did not occur and then use the money paid for personal expenses . Ponzi schemes are an example of embezzlement. Others include destroying employee records or pocketing company cash. Business lost approximately $400 billion each year to theft. Embezzlers can be held civilly and criminally responsible for their crimes.

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objective use to
achieve money
allocation to achieve
la desired outcome

Answers

The objective used to achieve money is to save money.

The allocation to achieve the desired outcome can be from investing and working.

Hope this helps have an excellent day!

stagflation can be defined as a combination of . economic migration and inflation economic aggregation and deflation economic aggregation and inflation economic stagnation and inflation

Answers

A combination of inflation and economic stagnation is known as stagflation.

A state of economic stagnation known as stagflation is characterized by inflation, high unemployment, and weak economic growth. Because attempting to address one of the issues can worsen another, economic officials find this combination exceptionally challenging to manage.

In 1965, when the UK economy was under pressure, British politician Iain Macleod coined the phrase "stagflation" in a speech before the House of Commons. He coined the phrase "stagflation scenario" to describe the results of inflation and stagnation combined.

It was once thought impossible to experience stagflation. It was excluded from their models by the dominant economic theories in academic and policy circles during the majority of the 20th century. In particular, macroeconomic policy was described in the Phillips Curve economic theory as a trade-off between unemployment and inflation, which emerged in the context of Keynesian economics.

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Which are the most common cleaners used in food handling and processing?

Answers

Cleaners used in food handling and processing are products designed to remove dirt, grease, and other contaminants from food contact surfaces.

The most common cleaners used in food handling and processing are:

1. Sanitizers: Sanitizers are used to reduce the number of microorganisms on surfaces and equipment. Common sanitizers used in food handling and processing include chlorine, iodine, and quaternary ammonium compounds.

2. Disinfectants: Disinfectants are used to kill bacteria and other microorganisms on surfaces and equipment. Common disinfectants used in food handling and processing include bleach, hydrogen peroxide, and phenolic compounds.

3. Detergents: Detergents are used to remove dirt, grease, and food particles from surfaces and equipment. Common detergents used in food handling and processing include alkali builders, surfactants, and alkaline detergents.

4. Acids: Acids are used to clean and remove scale from surfaces and equipment. Common acids used in food handling and processing include citric acid, phosphoric acid, and sulfuric acid.

What are contaminants?

Contaminants are substances present in the environment that are harmful, either through their presence or through the effects of their release into the environment. They can include chemical, biological, and physical agents, and can be either natural or man-made. Contaminants can be found in air, water, soil, and food.

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give 5 numbers smaller than -2 and 5 numbers bigger than -2​

Answers

smaller: -3, -4, -5, -6, -7.
bigger: -1, 0, 1, 2, 3

What is the definition of creative command

Answers

Answer:

Explanation:

a set of various licenses that allow people to share their copyrighted work to be copied, edited, built upon

what is the best way for owners of small businesses to maintain proper internal controls?

Answers

The best way for owners of small businesses to maintain proper internal controls is by implementing a system of checks and balances. This includes separating duties, keeping accurate records, and regularly reviewing financial statements.

Additionally, it is important to establish policies and procedures for handling cash, inventory, and other assets. Regular employee training and monitoring can also help ensure that all employees understand and follow these controls. Ultimately, maintaining proper internal controls can help protect the business from fraud and errors, and ensure that financial information is accurate and reliable.

The best way for owners of small businesses to maintain proper internal controls is by implementing a system that includes clear policies, segregation of duties, regular monitoring, and ongoing communication. This approach ensures businesses operate efficiently, minimize risks, and maintain accurate financial records.

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If the marginal benefit of the first donut is 30, the marginal benefit of the second donut is 15, and the marginal benefit of the third donut is 10,
what is the total benefit from eating 2 donuts?

Answers

Answer:

45

Explanation:

Marginal benefit is the additional satisfaction gained from consuming an additional unit of the good. It refers to the advantage associated with the consumption of one more unit of a product. The total benefit is total satisfaction derived from the consumption of goods and services.

The total benefit of consuming two doughnuts is the sum of consuming the first two doughnuts.

= 30 +45

=45

__ is the accounting function that involves observing business transactions and events

Answers

The accounting task of keeping records of corporate transactions and events is called bookkeeping.

The process of bookkeeping, which is the recording of financial transactions, is a step in the accounting process used in businesses and other organizations.

It entails setting up source documents for every business transaction, operation, and other event. Purchases, sales, receipts, and payments made by an organization or company as well as by an individual are all considered transactions. The single-entry and double-entry bookkeeping systems are two of the common ways of keeping books. Any procedure for documenting financial transactions is a bookkeeping procedure, even though these may be considered to be "genuine" bookkeeping.

The term "bookkeeper" typically refers to a person engaged by an organization to carry out bookkeeping duties (or book-keeper).

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Help me please, i’ll give brainliest and 15 points!!!!

Help me please, ill give brainliest and 15 points!!!!

Answers

^ haha wait really dang

identify which group of accounts may require adjustments at the end of the accounting period.

Answers

Answer:unearned revenue, Supplies, prepaid rent

Explanation:

If you do not complete high school, you are typically paid more than those who pursue post-secondary education Please select the best answer from the choices provided T F

Answers

Answer:

false

Explanation:

Post-secondary education refers to an education that goes beyond high school.

Answer:

false

Explanation:

A card issued by a bank that allows users to finance
a purchase.
Credit card
Debit card

Answers

Answer: Credit Card

Explanation:

Debit cards allow you to spend money by drawing on funds you’ve deposited at the bank.

Credit cards allow you to borrow money from the card issuer up to a certain limit in order to buy items or withdraw cash.

I hope this helps!

problem 15-4a (algo) part 3 3. prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.

Answers

To prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments, you'll need to follow these steps:

1. Determine the current fair value of the stock investments by referring to market prices or using a valuation technique.
2. Compare the current fair value with the initial cost or the previous adjusted value of the investments.
3. Calculate the difference between the current fair value and the initial cost or the previous adjusted value. This difference represents the fair value adjustment.
4. Create an adjusting journal entry to record the fair value adjustment. The entry should include the following accounts:
  - If the fair value has increased: Debit "Unrealized Gain on Short-term Stock Investments" and credit "Fair Value Adjustment" for the difference.
  - If the fair value has decreased: Debit "Fair Value Adjustment" and credit "Unrealized Loss on Short-term Stock Investments" for the difference.

Remember to always keep the entries balanced and maintain accurate records to ensure proper financial reporting.

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You are going to receive three perpetuities. Perpetuity 1 will pay $350 each year, with the first payment to be paid at Year 1. Perpetuity 2 will pay $550 each year, with the first payment to be paid at Year 15. Perpetuity 3 will pay $650 each year, with the first payment to be paid at Year 31. The effective annual interest rate is 8.58 percent. Find the combined value of these three perpetuities, evaluated at Year 25.

Answers

Therefore, the combined value of these three perpetuities, evaluated at Year 25, is 13874.51.To find the combined value of the three perpetuities evaluated at Year 25, we need to calculate the present value of each perpetuity and then sum them up.

Let's start with perpetuity 1. The cash flow is $350 per year, and the effective annual interest rate is 8.58 percent. Using the formula for the present value of a perpetuity, which is PV = C / r, where PV is the present value, C is the cash flow, and r is the interest rate, we can calculate the present value of perpetuity 1.

PV1 = 350 / 0.0858

= 4073.17

Next, let's move on to perpetuity 2. The cash flow is $550 per year, and the first payment will be received at Year 15. Since we want to evaluate the combined value at Year 25, we need to find the present value of perpetuity 2 for a period of 10 years.

PV2 = 550 / 0.0858

= 6414.37

Finally, let's calculate the present value of perpetuity 3. The cash flow is 650 per year, and the first payment will be received at Year 31. Again, we need to find the present value for a period of 25 - 31 = -6 years.

However, since the time is negative, we need to use the future value formula, which is PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods.

PV3 = 650 / (1 + 0.0858)^(-6)

= 3386.97

Now, we can find the combined value by summing up the present values of the three perpetuities.

Combined Value = PV1 + PV2 + PV3

= 4073.17 + $6414.37 + 3386.97

= 13874.51.

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Physician, veterinarian, and medical laboratory careers are all in the _____ Career Cluster. Government and Public Administration Finance Education and Training Health Science

Answers

Answer:

health science

Explanation:

took the test

The careers of Physician, Veterinarian, and Medical Laboratory fall within the "Health Science" Career Cluster. Therefore, option D is correct.

The realm of Health Science encompasses a tapestry of vital professions that embrace wellness, healing, and discovery. With careers such as Physician, Veterinarian, and Medical Laboratory expertly interwoven, this dynamic cluster unravels the mysteries of human and animal health.

It stands as a beacon of care, fostering collaboration between medical experts and researchers to unlock new frontiers. From diagnosing ailments to safeguarding public health, Health Science cultivates resilience.

Nurturing a symphony of knowledge, it harmonizes the melodies of medical advancement, safeguarding lives, and enriching our understanding of the intricate symphony of life.

Therefore, option D is correct.

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Most probably, your complete question is this:

Physician, veterinarian, and medical laboratory careers are all in the _____ Career Cluster.

A) Government and Public Administration

B) Finance

C) Education and Training

D) Health Science

How has private enterprise strengthened the united states economy?

Answers

Answer:

to generate prosperity and produce goods and services that meet people's needs and improve their lives.

Explanation:

Because businesses cannot outgrow the economy of their communities

Select the correct answer.
What is a benefit of joining a professional organization for your chosen career path?
A. taking difficult certification examinations
B. participating in competitive events
C. going to regional conferences to get continuing education credits
D. helping with choosing a career path​

Answers

Answer:

C. going to regional conferences to get continuing education credits.

Explanation:

How Well Do You Understand Yourself? Decisions

Answers

I understand my decision because before I decide I think about it before I’m 100% of doing something capable
Other Questions
What action can government take to assist the economy during a recession Analyse? Please helpA ferry that carries passengers and vehicles across a channel charges a base rate of $30 per vehicle. The first two passengers are included in this price, but each additional passenger is charged $5. Additionally, the ferry charges more for vehicles over 4,000 pounds. The rate for excess weight is $10 per 500 pounds.-Write an equation for this situation.-Find the cost of a truck that weighs 5,000 pounds with three passengers. 1- Can red estate assets become a liability? How or why cant?2- Prepare arepot with a number example about the rule 78? Working during junior high or the early high school years increases the chances that poor minority youth will drop out of school and engage in problem behavior. (true or false) Suppose Latasha runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Latasha's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Latasha produces. Total Revenue Total Cost Profit TOTAL COST AND REVENUE (Dollars) 0 1 2 6 7 8 3 4 5 QUANTITY (Frying pans) Calculate Latasha's marginal revenue and marginal cost for the first seven frying pans she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Marginal Revenue Marginal Cost COSTS AND REVENUE (Dollars per frying pan) 0 1 2 6 7 8 3 4 5 QUANTITY (Frying pans) Latasha's profit is maximized when she produces frying pans. When she does this, the marginal cost of the last frying pan she produces is $ , which is than the price Latasha receives for each frying pan she sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize her profit) is $ , which is than the price Latasha receives for each frying pan she sells. Therefore, Latasha's profit-maximizing quantity corresponds to the intersection of the Because Latasha is a price taker, this last condition can also be written as curves. frying Latasha's profit is maximized when she produces frying pans. When she does this, the marginal cost of the last frying pan she produces is $ , which is than the price Latasha receives for each frying pan she sells. The marginal cost of producing an additional frying pan (that is, one more fr han would maximize her profit) is $ , which is than the price Latasha receives for each frying pan she sells. Therefore, greater | profit-maximizing quantity corresponds to the intersection of the curves. Because Latasha is er, this last condition can also be written as COSTE total revenue and profit o 1 2 6 7 8 marginal cost and total revenue 3 4 5 QUANTITY (Frying pans) total cost and marginal revenue total cost and profit Latasha's profit is maximized when she produces frying pans. When she does this, the n marginal cost and marginal revenue produces is , which is than the price Latasha receives for each frying pan she sells. 1 ional frying pan total cost and total revenue (that is, one more frying pan than would maximize her profit) is $ , which is Jach frying pan she sells. Therefore, Latasha's profit-maximizing quantity corresponds to the intersection of the curves. Because Latasha is a price taker, this last condition can also be written as o 1 2 6 7 8 3 4 5 QUANTITY (Frying pans) TC = TR Profit = MR MC Profit =TR TC MC=TR Latasha's profit is maximized when she produces frying pans. Whel_ $ , which is than the price Latasha receives for each (that is, one more frying pan than would maximize her profit) is $ she sells. Therefore, Latasha's profit-maximizing quantity corresponds to t Because Latasha is a price taker, this last condition can also be written as harginal cost of the last frying pan she produces is The marginal cost of producing an additional frying pan | than the price Latasha receives for each frying pan P=MC curves. which of the following statements about the first stars that were born in the universe is expected to be true? according to your notes, which of the folowing factors influence the nature of public policy in a state managing diversity is more than hiring women and minorities; it is complex and involves which of the following?Valuing employee differences to build an effective organizationRecognizing the characteristics common to specific groups of employeesManaging a culturally diverse workforce Which of the following is the most successful solution to the problem of fish mortality caused by dams?Placing fish repellents on dam turbinesEliminating keystone species above the damBuilding fish ladders around the damHarvesting the fish before they reach the damDredging the sediments upstream of the dam Which organelle is denoted by B?RERSERcytoplasmgolgi