Since the 4.5 million is just an expected amount of fuel, J&L cannot achieve a perfect hedge in the future. They should estimate the accurate demand for fuel next year. 2. What are the pros and cons of using NYMEX contracts versus using the risk-management products offered by Continental Bank? Is the use of a monthly average price a net advantage or disadvantage to J & L?
TRX’s road show produces some bad news for the IPO. It appears that there is not enough interest in the preliminary file range of $11 to $13 per share. Based on the demand it would appear as though the price needs to be lowered to at least $9 per share. If the price is not lowered to $9 they will most likely not meat this offering. However, the strategic investors bought the shares at $11 per share.
In addition, the company’s B+ credit rating prohibited the company from obtaining loans with low interest rates. In order to strengthen the company’s cash balance, large capital expenditures were not done during years 11 and 12. Instead, the company focused on paying down its existing debt in years 11 and 12 in order to improving its credit rating. The improved credit rating would allow the company to refinance existing debt to lower interest rates, which would lower interest payments and conserve cash. In year 11, the outstanding principal of $19.2 million from a 5-year loan at 7.5% annual interest was paid off early resulting in a savings of $1.8 million in interest payments.
2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
This is partly a practical decision given that we have not provided rates beyond 20 year term in the book. We use the quoted value for $250,000 policies pro-rated to the size of policy we need, and this is incorrect — policy premiums per dollar decline as the size of the policy rises, since some costs are fixed. However, it is the best we have, and the difference will not be
It cost a lot more then the government expected they thought it would cost 6.5 millions but it cost 8 million in the first year. If you got poor relief you could not receive a pension also if you had been in prison in the last ten years you could not get it. For the first time help had been given as a right not a charity and the government was addressing needs which in the past had been left to charities or the individual to sort out themselves. Another area the liberals helped was the
c. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions? d. Assume the original facts except that they also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income? e. Assume the original facts except that the Jacksons owned investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year.
I came to this decision by using the feasibility analysis. The Juniper programs risk is too low to be competitive in the current market. The Palomino project does not have they reward to match the risk involved in the project. The ROI on the Palomino project would be $9000 per year for 5 years. The Stargazer, while it is the highest risk project, offers the most reward for the longest period of time.
financial crisis hit last year. (Associated Press, 2009).” Toyota had recently lost $3.5 billion even though they had the recent growth and financial stability. Losing this amount of money in such a short time period has scared their company and has been the first major downfall since the company started up in 1950 and having a record breaking year previously with 1.7 billion dollars in profits. With a solid growth record for the past 60 years it looked as though this would be very unlikely to happen to Toyota. This illustrates that even a multi-national company such as Toyota is not immune from financial mistakes, even with a strong past performance and competitive product line up.
Then there is the dreaded financial aspect, this in no way will be cheap to fund, but we have to look at what it is costing us in resources today, homelessness is costing the federal government thus the tax payers of the United States “this fiscal year, the federal government will spend $5 billion on programs for the homeless. Next year, that figure is likely to grow to nearly $5.7 billion.” (Jervis) That is a lot of money, maybe a small overall portion of the budget, but regardless it is not