Mighty oil and super gas sell and buy crude oil, respectively. super gas uses the crude oil to produce gasoline and wants to insure against input cost increases. suppose that on december 1, 2014 the price of crude oil is $62.30 per barrel. mighty oil and super gas enter into a contract on december 1, 2014. the contract specifies that mighty oil will deliver one million barrels of crude oil to super gas on february 27, 2015 for $65 per barrel. 1. the contract that mighty oil and super gas have entered into is called a 2. which of the following may be a reason for super gas entering into the contract? a. super gas is the sole provider of gasoline to the city of burntcorn. it is considered a natural monopoly, and the local government regulates it. as a result, super gas cannot increase the price it charges residents until the end of 2015. b. super gas forecasts that the price of crude oil will (very likely) be less than $65 a barrel on february 27, 2015. c. the institute of supply management's manufacturing index unexpectedly fell to 49.5% in november from 51.2% in october. this ignited fears that the u. s. economy was tipping into a recession.

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

The direct labor budget of yuvwell corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st quarter 2nd quarter 3rd quarter 4th quarterbudgeted direct labor-hours 11,200 9,800 10,100 10,900the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter. required: 1. prepare the company’s manufacturing overhead budget for the upcoming fiscal year.2. compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.