Answer: Sell four December coffee future contracts at $2.00 per pound
Explanation:
Based on the scenario in the question, the number of contracts that is required for hedging the entire crop will be gotten by dividing the total number of crops by the pounds that are available in one contract. This will be:
= 150,000/37,500
= 4 contracts
Therefore, the answer will be for Jarvis to sell four December coffee future contracts at $2.00 per pound
Answer:
Utility
Explanation:
Utility is an economic term used to represent satisfaction or happiness. Marginal utility is the incremental increase in utility that results from consumption of one additional unit.
Answer:
e. $104,000.
Explanation:
The computation of the ending capital balance is shown below:
As we know that
Ending capital balance = Opening capital balance + net income - withdrawn amount
where,
Opening capital balance = $64,000
Net income is
= Revenues - expenses
= $100,000 - $48,000
= $52,000
And, the withdrawn amount is $12,000
So, the ending capital balance i s
= $64,000 + $52,000 - $12,000
= $104,000
Answer:
Assume that you are a new analyst hired to evaluate the capital budgeting projects of the company which is considering investing in two CPEC projects, “Expansion Zone North” and “Expansion Zone East”. The initial cost of each project is Rs. 10,000. Company discount all projects based on WACC. Further, all the projects are equally risky projects and the company uses only debt and common equity for financing these projects. It can borrow unlimited amounts at an interest rate of rd 10% as long as it finances at its target capital structure, which calls for 50% debt and 50% common equity. The dividend for next period is $2.0, its expected that they will grow at the constant growth rate of 8%, and the company’s common stock sells for $20. The tax rate is 50%.
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