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
If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices to decline.
The current stock price is the present value of all future cash Inflows. So if the hobby fee will increase, then the discounting factor will grow, so the existing price of the destiny inflows will decrease, and the inventory charge will fall.
In economics, inflation is a popular increase in the expenses of products and services in an economic system. whilst the overall fee degree rises, each unit of foreign money buys fewer items and services; therefore, inflation corresponds to a reduction in the shopping power of money.
Higher interest costs imply better borrowing fees, human beings will sooner or later begin spending less. The call for goods and services will then drop, as a way to cause inflation to fall.
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Answer:
The answer is: Cobalt Sodas is not dealing with its main problem, which is the shift in consumer behavior
Explanation:
The main issue that Cobalt Sodas (CS) must address is the change in consumer behavior and to do this they must diversify their product lines.
Consumers are less interested now in beverages that are seen as unhealthy. They want to buy beverages considered to be healthy, so CS should start to develop a new product line of healthy beverages. If they sell "old style" cans that wouldn´t have a lasting positive impact. Maybe at the beginning they sell more cans but eventually their sales will keep falling until they diversity their product lines.
Answer:
Note receivable is a written promise by a supplier agreeing to pay a sum of money in the future.
While
Account receivable is the funds owed by the customers.
Answer:
Please see the answer below
Explanation:
A vice-president typically has a high level of responsibility in the company as compared to the HR Professional. VP oversees a significant portion of the company as well as to look after the all the company’s functions when CEO is not available. While the person in Human Resource is limited responsibility and should not be compared with VP. The Vice President salary is also commensurate with the amount of expertise, previous experience and the amount of risk that is associated in performing the duties of the post to keep the company profitable and in good standing.
