Examlex

Solved

In a Forward Hedge, If the Forward Rate Is an Accurate

question 64

Multiple Choice

In a forward hedge, if the forward rate is an accurate predictor of the future spot rate, the real cost of hedging payables will be:​


Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Dividend Payout Ratio

A financial metric that calculates the percentage of net income distributed to shareholders in the form of dividends.

Total Stockholders' Equity

The total net worth of a company according to its balance sheet, calculated as total assets minus total liabilities.

Common Stock

A type of equity security representing ownership in a corporation, with holders typically having voting rights and receiving dividends.

Related Questions