Answer:
= 60%
Explanation:
Contribution ratio represents the marginal benefits of producing an extra unit. It is calculated by the formula.
CM ration= Contribution margin/ sales revenue
Contribution margin = sales - varible costs
therefore contribution margin ratio= sales -revenue/ sales x 100
=$20,000 - $ 8000/ 20,000 x 100
= 12000/20000 x 100
=0.6 x 100
= 60%
Answer:
Capital gain yield will be -51.73%
So option (d) will be the correct answer
Explanation:
We have given that Debra purchased 4500 shares of KNF stock for $218056
So price of one share 
So the beginning price = $40.380
She sold the share at price of 19.49 per share
So ending price = $19.49
We have to find the capital gain yield
We know that capital gain yield is given by
Capital gain yield 
%
So option (d) will be correct option
Answer:
0.9; 100 million; 90 million; 2,143
Explanation:
The new fuel's price change has a standard deviation that is 50% greater than price changes in gasoline futures prices.
So, if standard deviation of future prices is taken as '1' then for spot price it will be 50% higher, i.e 1.5
The hedge ratio:
= Correlation × (standard deviation of spot price ÷ Standard deviation of future prices)
= 0.6 × (1.5 ÷ 1)
= 0.9
The company has an exposure of 100 million gallons of the new fuel.
Gallons in future gasoline:
= Hedge ratio × 100 million gallons of the new fuel
= 0.9 × 100
= 90 million
Each contract is on 42,000 gallons, then
Number of gasoline futures contracts should be traded:
= 90,000,000 ÷ 42,000
= 2,142.9 or 2,143
Answer:
The NPV value of the profit over the three year period is $9,900,966.32
Explanation:
The NPV of the profit over three year period was computed by first of all incorporating all growth assumptions relating to sales volume,sales price,variable and fixed costs.
With the assumptions incorporated , I calculated the sales revenue,variable and fixed costs per year,hence the profit figure is sales less variable and fixed costs.
Finally I discounted the profit to present using the formula 1/(1+r)^N,where r is the rate of 4% and N the relevant year.
Kindly find attached spreadsheet
C Ethan
because that is who u are refering to.
