Explain in detail, using examples where possible, the difference between hedging, speculation

Q: What is meant by securities exchange?

A: A stock exchange, usually known as a securities exchange. This is a market where the stockbrokers…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Average daily balance method is the method wherein the finance charges are calculated on the balance…

Q: Using Exhibit 5.7, calculate the three-month forward premium or discount for the Swiss franc versus…

A: Compute the three-month forward premium or discount as follows: Forward (n, Swiss franc) = Forward…

Q: Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott…

A: Given: Lisa deposit = $80,000 Interest rate = 6% Scott deposit = $80,000 Interest rate = 6%

Q: Stephen deposited $1,200 at the end of every month into an RRSP for 8 years. The interest rate…

A: Amount deposited at the end of every month is $1200 Time period is 8 years Interest rate for first…

Q: ​Enterprise, Inc. bonds have an annual coupon rate of 14 percent. The interest is paid semiannually…

A: Here, Coupon rate is 14% Time Period is 13 years Par Value is $1,000 YTM is 8%

Q: On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corporate…

A: Given: Initial purchase = 10 shares Price per stock for initial purchase = $21 Number of dividends…

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they…

A: To calculate the deposit amount we will use the present value formula as follows:   Deposit amount =…

Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…

A: As per the Unpaid Balance Method Finance Charges computed on the unpaid balance of prior period. It…

Q: National Corporation shares are selling for P50. Earnings for the last 12 months were P3 per share.…

A: Solution:- Price Earnings (P/E) Ratio means that how much times is the price of the entity, in…

Q: The pecking order states that firms should: issue debt first. issue new equity first. always issue…

A: According to the pecking order idea, corporations prioritize their financing sources (from internal…

Q: In December 2017, an American investor buys 1,000 shares in a Mexican company at a price of 500…

A: Total number of shares purchased are 1000 Purchase price is 500 pesos Selling price is 550 pesos…

Q: If the market adheres to the strong form of the efficient market hypothesis, what is the implication…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Find the quote for the Lake Lead Group. Assume that the dividend is constant. a. What was the…

A: Given: Lake lead Grp Amount Highest price 56.26 Low price 33.87 Dividend 1.99 Dividend…

Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized…

A: Return on Investment is the ratio which illustrate the benefir received out of the money invested in…

Q: Which of the following provides the best description of the liquidity ratios? Current ratio is the…

A: Solution:- Liquidity ratio measures the liquidity of a firm, i.e. how efficiently a firm is able to…

Q: Assume you have a student loan that you will pay off in 10 years. How much would you save an…

A: The question is related to refinancing the loan at lower interest rate which was originally financed…

Q: old's Gym wants to offer its clients a monthly payment option on its annual membership dues of $490.…

A: Annual membership can be converted into monthly membership depending the on period and interest rate…

Q: 10. A payday loan business in town charges $3 interest per two week on a $200 loan. The effective…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: Determine the proceeds of the sale on a six- year interest-bearing promissory note for $5,750 at…

A: Future value of present amount With present value (PV), periodic interest rate (r) and period (n),…

Q: For each of the following ordinary annuities, calculate the interest and principal portion of the…

A: Here, To Find: Interest and principal portion of the payment =?

Q: 2. What is the actual rate of interest if £4000 deposited for 3 years attracts interest of £1440?

A: As per Bartleby Honor Code, when multiple independent questions are asked, the expert is required…

Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized…

A: The payback period is the span of time necessary to repay the cost of an investment. Simply…

Q: What is venture capital? An angel investor? A private placement?

A: Following the current economic crisis, financial management has become more methodical. Following…

Q: Carpet Baggers, Inc., is proposing to construct a new bagging plant in a country in Europe. The two…

A: Spot exchange rate for euros is $1.45/€ Spot exchange rate for Swiss francs is SFr1.65/$ Interest…

Q: A​ bond's market price is ​$1,175. It has a ​$1,000 par​ value, will mature in 8 ​years, and has a…

A: Here, To Find: Yield to Maturity (YTM) =?

Q: Assume you have a student loan that you will pay off in 10 years. How much will you save in interest…

A: Here first we need to calculate monthly payment at both original rate of 12% and new rate of 8%.If…

Q: Decreasing the number of years of a loan decreases the amount of interest repaid over the term of…

A: a) Calculation of monthly payment for 30 year loan EMI Calculation formula= (P * R *…

Q: What will be TapDance’s WACC?

A: The formula to compute WACC is shown below: = Weightage of debt × cost of debt × ( 1- tax rate) +…

Q: You've collected the following information from your favorite financial website. 52-Week Price Div…

A: Data given: Current dividend(D1 )= $0.93 Growth rate(G) = -13% Current price(P0 ) = $15.56   Formula…

Q: Ant Ltd is a profitable manufacturing company. After evaluation of the budget for the coming…

A: NPV: Net Present Value is the technique of Capital budgeting under which we will calculate the…

Q: Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the…

A: Solution:- When an amount is invested, it earns interest.  The amount initially invested is called…

Q: Describe the three methods used to ensure that funds are available to redeem corporate bonds at…

A: Debt instruments issued by private and public businesses are known as corporate bonds. Companies…

Q: QUESTION 3 For the nonconventional net cash flow series shown, the external rate of return per year…

A: MIRR is techniques under Capital budgeting which is used to assess the cost and profitability of a…

Q: A JBH share has just paid a dividend of $1.25 per share. This dividend is expected to grow at a rate…

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…

Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…

A: Solution:- Profit means the surplus of revenue over the incurred costs.

Q: ​(Related to Checkpoint​ 9.6)   ​(Inflation and interest rates​) What would you expect the nominal…

A: Nominal interest rate refers to the interest rate before taking inflation into account. The equation…

Q: Why might Apple have needed to hold on to so much cash in excess of what it needed to operate? What…

A: Besides being known for its popular products like the i-phones, i-pads, etc. Apple is also popular…

Q: Williamson, Inc., has a debt-equity ratio of 3. The firm's weighted average cost of capital is 12…

A: The Weighted Average Cost of Capital WACC is calculated with the help of following formula  WACC =…

Q: Toy plc is expected to record earnings per share of £7.00 next year and is expected to maintain its…

A: We will use Dividend discount model for calculation of value of share. In Dividend discount model,…

Q: Prokter and Gramble (PG) currently has $25 billion outstanding debt. PG has a cost of equity capital…

A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…

Q: A company has the following items for the fiscal year 2020: Cash = 2 million Marketable securities =…

A: Current ratio is the short term liquidity ratio calculated by dividing current assets by its current…

Q: An, Inc., plans to borrow $50,000 from a bank at 12% interest for new .recording equipment. Compute…

A: Given: Borrowing amount = $50,000 Interest rate =12% Years = 7

Q: O Between $184,561 and $184,699

A: Net present value refers to the amount used for the calculation of the current total value of the…

Q: Suppose you observe the following direct spot quotations in New York and Toronto, respectively: USD…

A: First, we will convert the rate of Toronto to match the quotation in Newyork. Then we will look…

Q: 1. Corn is an essential commodity in a small Central American country and the government intends to…

A: Solution:- Subsidy means the benefit granted by the government by decreasing the price, while by…

Q: A company deposited $5,500 into an investment fund at the beginning of every quarter for 6 years. It…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: Using the unpaid balance method, find the current month's finance charge on a credit card account…

A: Unpaid Balance Method: It is the method where finance charges are calculated based on previous…

Q: se the compound interest formula A = P(1 + r)" and the given information to solve for r. A = $2200,…

A: We need to use compound interest formula given below A = P(1 + r)" where A=Amount or Final payment…

Q: what is the best alternative?

A: Present Value: It is the present value of the future stream of cash flows. It is estimated by…

Procedural Coding: CPT and HCPCS

Computer hardware and accessories nowadays support various types of coding for a variety of purposes. Procedural coding is a straightforward process that combines several steps of a calculative sequence to achieve the desired result. It is a type of medical classification that aids in the identification of specific surgical, medical, or diagnostic procedures. It begins as soon as a patient enters the premises of a healthcare provider. These coding systems have significantly aided the process of insurance claims and billing.