Financial hedging of firm’s operating exposure
List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?
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Financial hedging is implemented rapidly with relatively low costs; however, it is complex in order to hedge against long-term, real exposure with financial contracts. Otherwise, operational hedges are costly, not easily reversible and time-consuming.
Explain some of the reasons why international foreign trade is difficult and risky from the perspective of exporter than is domestic trade.
Intangible assets: It is the asset that is not visible however we can feel them. The main examples of these assets are goodwill, patent and trade marks.
Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate
Briefly explain the term Discount and also describe their important types?
Owned by an entity, something that provides benefits and whose cost can be measured. The measure of the value of assets in dollar appears on the
It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?
Distinguish between the parallel loan and the back-to-back loan.
company A began operation on january 1,2012. The annual reporting period ends December 31.The trial balance on January 1,2013 was as follows
Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?
Describe Sale return or return inward in brief.
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