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Why do businesses spend time, effort, and money to produce forecasts? Explain.
Businesses fail or succeed depending on how well prepared they are to deal with the situations they confront in the future. Thus they expend considerable sums making approximation (forecasts) of what the future situation is likely to be. Businesses develop fresh products, set production quotas and select financing resource based on forecasts about the future economic environment and the firm's condition. If economists forecast interest rates will be relatively high, for instance, firms may plan to defer expansion and limit borrowing plans.
Q. What do you mean by Financial Leverage? Financial Leverage: - The financial leverage perhaps defined as the tendency of the residual net profit to vary disproportionately wi
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Q. Define a currency futures contract? A currency futures contract is a standardised contract for the buying or else selling of a specified quantity of currency. It is traded o
Assume that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the startup stage. However, you remain convinced that
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Question 1: i) Is there a stable and inverse link between unemployment and inflation? ii) The government announces that expansionary policies will be enacted in a view
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Illustration Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:
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