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3 years ago

Commodity futures contracts can be bought and sold on the open market for which reason

Business

1 answer:

timama [110]3 years ago

7 0

Answer:

Futures contracts are derivatives. Their price is derived from one or more underlying assets. Due to their nature as commodities, a buyer can agree to purchase at a predetermined price; and a seller can agree to sell that quantity at the agreed-upon price.

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Which question can best help a consumer assess risk when purchasing insurance? How much must be paid to make a claim? What probl

Misha Larkins [42]

Answer: the answer is : What problems are most likely to happen?

Explanation:

5 0

2 years ago

Read 2 more answers

Beliefs about what is ethical serve as a moral compass to guide behaviors of individuals

zmey [24]

True. ..................

6 0

2 years ago

Alamo Inc. had $300 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $30 mill

scoray [572]

Answer:

$ 210 million

Explanation:

Data provided :

Taxable income for the current year = $ 300 million

Tax rate of the income = 40%

therefore, the income tax for the current year = 0.40 × $ 300 million

the income tax for the current year = $ 120 million

Decrease in the deferred tax assets = $ 30 million

Increase in the deferred tax liabilities = $ 60 million

Hence,

the total income tax expense for the year

= $ 120 million + $ 30 million + $ 60 million

= $ 210 million

7 0

2 years ago

Employees at a pharmaceutical company make large profits by buying shares of the firm when the trials of a drug begin but before

lesantik [10]

Answer:

The correct answer is letter "C": Strong form.

Explanation:

The Efficient Market Hypothesis (EMH) is the theory that beating the market is impossible because current stock prices reflect all the information investors need to trade the markets. Technical and fundamental analysis remain useless in trying to predict future price action.

The EMH could be classified as the Weak, Strong, and Semi-Strong EMH. The strong form of the EMH establishes that insider information and public information are already in the current stock price, then, there is no special data that could provide an advantage to an investor to take advantage of the market.

In such a case, the strong form of the EMH is opposed to the idea given in the example since it is proposing insider information gives employees an advantage to make large profits before the information of trial drugs is spread among the public.

4 0

2 years ago

Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's t

tigry1 [53]

Answer:

The ROE was 23.33%

Explanation:

To calculate the ROE, first we have to calculate the next:

1) Total asset turnover=Sales/Total assets

=(325000/250,000)=1.3

2) Debt to total asset=Debt/Total assets

Hence debt=0.675*$250,000=$168,750

3) Total assets=Total liabilities+Total equity

Total equity=($250,000-$168,750)=$81,250

4) Equity multiplier=Total assets/Equity

=$250,000/$81,250=3.07(Approx)

5) Profit margin=Net income/Sales

=(19000/325000)=5.84615385%(Approx)

Finally we have to calculate the ROE

ROE=Profit margin*Total asset turnover*Equity multiplier

=5.84615385*3.07*1.3

= 23.33% Approx

4 0

2 years ago