Hedging techniques are strategies and tactics employed by investors to reduce financial risk. Pairing, short-against-the box, exchange-traded funds, futures and options are the most commonly used to predict and reduce financial risk.
A:A sales commission is calculated using the commission structure agreed upon between the owner or manager of a business and a salesperson. This commission structure is sometimes received as a one-time payment. However, it can also be received as a recurring commission over the life of the sales account.
A:The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.
A:According to AmosWeb, total revenue is calculated by multiplying the price received from the product times the quantity of the product sold at that price. Total revenue is usually depicted as a total revenue curve with it being directly related to marginal revenue and average revenue.
A:The term "net price" refers to the cost of something minus the price of anything that lowers the total dollar value a consumer actually pays, according to U.S. News & World Report. The term is most commonly used by colleges and universities.
A:To calculate a percentage of $1.00, treat it as 100 pennies. The percentage sought is equal to the same number in cents. According to Math Is Fun, "percent" is a number per 100, so treating $1.00 as a 100 pennies makes the math simple.
A:One formula for calculating yearly compound interest is M=P(1+i)n. "M" represents the final amount with the principal and interest combined, "P" represents the principal amount, "i" represents the interest rate, and "n" is the number of years invested.
A:International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.
A:The formula for total profit, or net profit, is total revenue in a given period minus total costs in a given period. If a business generates $250,000 in total revenue in a quarter, but has $215,000 in total costs, its total profit for the period is $35,000.
A:The indirect method for preparing a cash flow statement is used to show the uses and sources of cash by a business. It is the preferred method by most companies because the information required to prepare it is fairly easy to assemble from accounts that a company usually maintains. However, the indirect method does not clearly show how cash flows through a business, which is shown in the direct method.
A:Investopedia explains that a financial analyst gathers data and analyzes the financial foundation of a business or industry. The daily tasks of a financial analyst depend on his level of experience. Most junior analysts are responsible for gathering data, while senior analysts are responsible for making connections in the industry. Junior analysts are promoted to senior analysts after a minimum of three years in the industry.
A:The cost to buy a star ranges from $19.95 to $50 and higher, depending on the specific package chosen. Certain star packages include medallions while others include a commemorative plaque. It is also possible to name the star specifically for a particular person.
A:Compound interest is a financial term used to describe the process where the interest earned on a principal investment over a set period of time is added to the principal amount. The interest payable for the following periods is recalculated on the sum of the original investment and the previous interest earned. The word "compound" refers to the magnified effect that this method has on an investment's growth potential.
A:Hedging techniques are strategies and tactics employed by investors to reduce financial risk. Pairing, short-against-the box, exchange-traded funds, futures and options are the most commonly used to predict and reduce financial risk.
A:The difference between simple interest and compound interest is that simple interest builds only on the principal amount, while compound interest builds on both the principal and previously earned interest. Because of this, compound interest always yields greater profits.
A:Petty cash transactions are small business expenses that are paid out in cash, according to About.com. Frequently a company has a small amount of cash on hand that is used to pay for small purchases or reimburse employees for company purchases made out of pocket. Petty cash expenditures are recorded in the company's financial records to keep track of how the money is utilized.
A:A home construction cost calculator is a calculator used to estimate the cost of constructing a new house. The calculator helps a person to determine how big the house, the kitchen and the rooms should be. It also asks a person what kind of finishing he wants around the house.