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The exchange rate uncertainty may not essentially mean that firms face exchange risk exposure. Describe why this may be the case.Answer: A firm can comprise a natural hedging position due to, for instance, flexible sourcing capabilities, diversified markets, etc. Additionally, to the extent that the PPP holds, nominal exchange rate alters do not influence firms’ competitive positions. Within these circumstances, firms do not need to worry about exchange risk exposure.
Q. Advantages of Trade Credit? i) Easy Availability: Unlike other sources of finance, trade credit is relatively easy to obtain. Except in the case of financially very unsou
What is GATT, and what is its goal? GATT is also termed as General Agreement on Tariffs and Trade. It is a treaty which seeks to decrease trade barriers among participant nation
How do tax considerations affect the cost of debt and the cost of equity? As interest on debt is tax deductible to the issuing firm, as much higher the tax rate the lower the aft
What do you meant by common stocks in the financial term? Common Stocks: Common stocks illustrate ownership interests into the firm. Common stockholders obtain dividends (wh
Discuss the applicability ofan operating cycle in a poultry business(consider broilers)
Demerits of Pay Back Method:- (i) It ignores the Cash Flows after the Pay Back Period: - The main shortcoming of this method is that it completely ignores all cash inflows subs
functions of stock market in usa
Z works for HS Company and has been asked to undertake an assessment of any health and safety issues that might be potential hazards in the department which she manages. Z's respon
What are sources of funds for an assignment?
Q. Selection of a project in Financial Management ? The selection of a project is typically made on the following line: (i) In general a project becomes acceptable if it has
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