Use of derivative financial instruments

Assignment Help Finance Basics
Reference no: EM131318504

The following appears in the 2000 10-K of International Business Machines:

The company employs a number of strategies to manage these risks, including the use of derivative financial instruments. Derivatives involve the risk of non-performance by the counterparty.

Reference no: EM131318504

Questions Cloud

What are joseph graves five pillars of racism : What are Joseph Graves' five pillars of racism? Do you agree with his assertions? Why or why not
Create a doucument for the given post : Create a document titled "Frequently Asked Questions Regarding Client Rights. The document should provide the following at a minimum:A list of client rights, and which 3 you think are most important and why?An explanation of the process should a cl..
Does the organization value chain fully align with strategy : Does the organization value chain fully align with the strategy? Are their activities that should be added, eliminated, or modified significantly?
Describes the world indifference to human suffering : In The Perils of Indifference, Elie Wiesel describes the world's indifference to human suffering as "inhuman," and he continues by stating that, "Indifference is always the friend of the enemy, for it benefits the aggressor-never his victim, whose..
Use of derivative financial instruments : The company employs a number of strategies to manage these risks, including the use of derivative financial instruments. Derivatives involve the risk of non-performance by the counterparty.
What should be the current value of abc stock : ABC Corporation just paid a dividend of $1.50 a share. The dividend is expected to grow at 10% a year for the next 2 years, and the 5% per year thereafter. The required return to invest in ABC stock is 10.50%.
What is the net present value of project : An interest expense of $11,000 will be incurred annually. The project has a life of 3 years. At the end of the three years, the equipment has an estimated market value of $26,000. The company requires a 14% rate of return and is in the 34% margina..
Discuss the benefit from the use of long term debt : Determine the Return on assets, Return on investment, Return on total equity and Return on common equity.- Discuss the benefit from the use of long-term debt and preferred stock.
Capital budgeting methods : Payback Period: Gas Station A is paid back in 2 years; CF1 in year 1, and CF2 in year 2. Gas Station B is paid back in one (1) year. According to the payback period, when given the choice between two mutually exclusive projects, the investment pai..

Reviews

Write a Review

Finance Basics Questions & Answers

  Find values using the equations and then a financial calc

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. a. An initial $500 compounded for 1 year at 6% b. An initial $500 compounded for 2 years at 6% c. The present value of $500 due in..

  How much will you contribute to your retirement

What are the present-day tax savings from your retirement planning?

  Expected value and variance of the income

a. Calculate the expected value and variance of the income. b. Suppose you have a utility function of U(W)=√W and you have zero initial wealth. If someone offers to pay $6,500 (a guaranteed payment) in order to lease and run the business, should y..

  Due to growing demand for computer software the perry

due to growing demand for computer software the perry company has had avery successful year and expects its earnings

  Research a company from which you regularly purchase service

Use the internet to research a company from which you regularly purchase services, with a focus on that company's marketing strategy. Be prepared to discuss. From the e-Activity, assess the company's marketing strategy, with a focus on marketing mix...

  Using the following treasury bond information

Using the following Treasury Bond information for a bond maturing in August 2029, What is its current yield? What is its yield to maturity?  What is the bid-ask spread?August 15, 2029  Coupon 6.125  Bid 123:13  Ask 123:15  chg -58  Asked Yield 4.2790

  What will be the remaining balance on the mortgage

You recently obtained a 30-year, monthly payment. $250,000 mortgage with a 7 percent nominal interest rate.

  What is the statistical test for examining the significant

multiple choice questions1. what is the correct order of steps in testing a hypothesis?a. statement of null hypothesis

  Explain four governmental expenditures that you believe

Discuss four governmental expenditures that you believe will have a significant impact on the national economy. Justify your response with examples.

  The treasurer at abc laboratories is trying to determine

the treasurer at abc laboratories is trying to determine the expected return on equity for the firm. the stocks beta is

  Identify good components for a portfolio

Define and describe why Coca-Cola and Dell would be good components for a portfolio. Research company data, 10K reports, investment reports, general economic data,

  1 pt barnum is concerned about the health of his star

1. p.t. barnum is concerned about the health of his star trapeze artist. if the artist is capable of performing a

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd