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2 years ago

A farmer and an investor negotiate a Futures Contract where Tomatoes will be sold

1 answer:

8 0

If prices rise to $15 from the original $12 it was at in 6 months, the person that benefits between the investor and the farmer will be the Investor.

<h3>Why would the investor benefit?</h3>

The investor has fixed the price of the tomatoes to $12 when they purchase it in 6 months.

This means that the new price of the tomatoes will not affect them and they will still spend less than the market price of $15 when they eventually purchase the tomatoes.

In conclusion, the investor benefits.

Find out more on Futures Contracts at brainly.com/question/1193397.

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Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The curren

ArbitrLikvidat [17]

Based on the information given the levered value of the firm is $3,824,318.

First step is to calculate the Unlevered firm value

Unlevered firm value = EBIT(1 - Tax) / Cost of equity

Unlevered firm value= $628,000 x (1-.35)/.176

Unlevered firm value = $628.000×.65/.176

Unlevered firm value = $2,319,318

Second step is to calculate Levered firm value

Levered firm value = Unlevered firm value + (Tax rate× Debt))

Levered firm value= $2,319,318 + (.35 x $4,300,000)

Levered firm value= $2,319,318 +$1,505,000

Levered firm value = $3,824,318

Inconclusion the levered value of the firm is $3,824,318.

Learn more about levered value here:brainly.com/question/20067496

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3 years ago

The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125

natima [27]

Answer:

D. 76.6 %

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

First Calculate the Contribution

Contribution = Sales - Variable Costs

= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)

= $744,000 - $174,000

= $570,000

Then Calculate Contribution Margin Ratio

Contribution Margin Ratio = $570,000 / $744,000 × 100

= 76.61290

= 76.6 % ( 1 decimal)

5 0

3 years ago

An agent does not like another broker and refuses to present his offers. The agent's employing broker notices he does a good job

Ivan

Answer:

Not ok and both broker and agent can be in trouble for lack of supervision

Explanation:

Based on the information provided within the question it can be said that this situation is not ok and both broker and agent can be in trouble for lack of supervision . This is because the agent and the employing broker are obligated to put the client's interests first and have no authority to withhold any offers from the client. That being said the employing broker also has the responsibility of supervising the employees and making sure that personal views do not affect the business decisions.

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3 years ago

It costs $34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol a

victus00 [196]

Answer:

The investor will pay up the rereofitted pumps in a period of 22.52 months.

Explanation:

First, we solve for the amount of profit generate per month:

21,000 gallons a month x $0.09 per gallon = $1,890

Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $1,890.00

time n

rate 0.02

PV $34,000.0000

$1890 \times \frac{1-(1+0.02)^{-n} }{0.02} = 34000\\$

$(1+0.02)^{-n}= 1-\frac{34000\times0.02}{1890}$

$(1+0.02)^{-n}= 0.64021164$

We use logarithmics properties to solve for n:

$-n= \frac{log0.64021164021164}{log(1+0.02)$

-22.52006579

n = 22.5200 = 22 and a half month.

7 0

3 years ago

Using a systematic process and practicing writing can help a business writer become better at which writing skills? Check all th

evablogger [386]

Answer:

The correct answer is letter "A" and "D": Focusing on the concerns of the audience; Being purposeful.

Explanation:

While writing business reports, it is important to be concise and short. The message provided must go straight to the purpose of writing the report. Statistical data should be considered without making it the center of the report -unless necessary- because the objective is always capturing the audience's attention with simple but meaningful facts.

6 0

3 years ago