Answer:
$4.50
Explanation:
In order to make a profit from the futures contracts, it would be appropriate to take a long position in the June futures contract(buy) and take a short position in the December futures contract.
The investor would borrow $60 today which would necessitate paying back $60 plus a half-year in interest payment.
loan repayment=$60*(1+5%/2)=$ 61.50
In December, sell crude oil at $66 and repay the loan principal and interest
profit=$66-$61.50=$4.50
Answer:
C. Depreciation.
Explanation:
The Indirect method reconciles the Operating Profit to the Operating Cash flow by adjusting the following items - (1) Non-cash items previously added or deducted from Operating Profit and (2) Changes in Working Capital.The only item added back on the list is depreciation - non-cash item previously deducted from Operating Income.
Answer:
stabilize and monitor the global marketplace
Explanation:
In simple words, global institutions are the organisations that work for the regulation and monitoring of certain activities all around the world. International monetary fund and International labor authority are two of the prime examples of such institutions.
In respect of market place, the primary goal of such institutions is to stabilize the market place so that it can run more efficiently.
Answer:
c. 11%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs. weightage can be calculated by using the market value of the equity and debt.
The formula for WACC is
Weighted average cost of capital = (Cost of equity x Weightage of equity) + (Cost of debt (1 - tax ) x Weightage of debt)
Weighted average cost of capital = (12% x 80%) + (10% ( 1-0.3 ) x 20% )
Weighted average cost of capital = 9.6% + 1.4% = 11%
Answer: B. Warehouse from inventory control
Explanation: Of all the duties highlighted it is most important to separate the Warehouse from inventory control.
Warehouse is a given space where finished goods,raw materials and other inventories are stored.
Inventory control is a supply chain management activity that regulates the inflow and outflow of inventories. Considering the other options,most can be done by the same personnel as they don't involve much of technical competence or high volume of physical activity.
Inventory control is a high volume activity involving high level of planning and coordination of different activities and units, adding it to Warehouse where the volume of physical activity can be overwhelming will aversely affect the overall business.