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Firms exposed to the risk of interest rate changes may reduce that risk by?
Wiki User
∙ 14y ago
One way to partially reduce that risk is through interest rate hedging activities in the financial futures market. Hedgingmeans to engage in a transaction that partially or fully reduces a prior risk exposure.
Wiki User
∙ 14y ago
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What do firms owe their creditors?
Firms will owe their creditors a debt and usually some type of interest.
The potential conflict of interest between a firms owners and its managers is referred to as what?
agency
Which group tends to offer the most favorable interest rates?
Brokerage firms
Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Company A and B are offered the following interest rates on a loan of Rs5 million by their banks You are required to construct an interest rate swap for these firms netting 0.5 percent?
Q.No: 2. Company A and B are offered the following interest rates on a loan of Rs.5 million by their banks. You are required to construct an interest rate swap for these firms netting 0.5% to the bank acting as intermediary and be equally attractive to A and B Company Fixed Rate Floating RateA 15% MIBOR +2%B 18% MIBOR +2.5%
What do firms owe their creditors?
Firms will owe their creditors a debt and usually some type of interest.
How many firms are traded on the FTSE?
There are approximately 1700 firms traded on the FTSE. The number of firms traded changes daily. New firms are added as some firms drop off the exchange.
How information system impact organizations and business firms?
The introduction of a new information system will affect organizational structure, goals, work design, values, and competition among interest groups, decision making, and day to-day behavior Information technology can reduce transaction and agency costs, and such changes have been accentuated in organizations using the internet.
What sort of conflict of interest evolved for audit firms in the 1990s?
During the 1990s the growth of management consulting by audit firms caused many observers to question whether those firms were sufficiently independent to conduct their audits of public companies in the interest of the investing public.
Which group tends to offer most favorable interest rate?
Brokerage firms
The potential conflict of interest between a firms owners and its managers is referred to as what?
agency
Which group tends to offer the most favorable interest rates?
Brokerage firms
What is Circular flow of income between households and firms?
from the household, the income flow which is the purchase of goods and services will become firms. then the income flow from the firms which is the wages, interest and rents will go back to the households.
A type of interest group that represents business interests?
Lobbyists are the interest group that represent business firms or professionals.
Why firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses. Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
How do workers typically express self interest?
By minimizing the economic losses of other business firms
How do workers typically express self-interest?
By minimizing the economic losses of other business firms
