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2 years ago

What investments could Trafigura make to maximise its market position while maintaining a responsible risk profile

Business

1 answer:

galben [10]2 years ago

7 0

Answer:

By applying a process of natural hedging, with integrated operational management, logistics and infrastructural investments, Trafigura can diversify its activities and investments so that risks are flattened out. For instance, its investments in storage and shipping capabilities ensure that if the demand for storage is low, the demand for shipping will increase and vice versa.

Furthermore, when Trafigura is not trading actively in the physical commodity, it can use its asset management, logistics, and distribution capabilities and globalized network of subsidiaries and activities to offset the low revenue from trading. These diversified investments and assets, therefore, enhance and complement its various activities so that its risk profile is constantly being managed in a balanced manner without incurring so much risk costs.

Explanation:

Trafigura Group Pte. Ltd. according to sources, is one of the world's "largest independent and integrated commodity traders and a logistics, warehousing, asset management, mining, and energy distribution conglomerate." As a multinational commodity trading company founded in 1993, Trafigura trades in base metals and energy, and is registered and headquartered in Singapore.

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Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m

Hoochie [10]

The free cash flow can be calculated as below:

Revenue 12000000

Less: Expense (8000000)

Less: Depreciation (1500000)

Earnings Before Tax 2500000

Less Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Less: Change in Working Capital (500000)

Less : Purchase of Asset (700000)

Free Cash Flow 2050000

Thus Free Cash Flow can be calculated as above.

4 0

2 years ago

Ben &Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben &Jerry's Chunky Monkey" and "Ben &

enyata [817]

Complete Question:

Ben & Jerry’s Ice Cream buys keywords for a search marketing campaign such as “Ben & Jerry’s Chunky Monkey” and “Ben & Jerry’s Cherry Garcia.” What type of keywords is the firm buying?

Group of answer choices

A. Negative keywords

B. Organic keywords

C. Native keywords

D. Generic keywords

E. Branded keywords

Answer:

E. Branded keywords.

Explanation:

In this scenario, Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." The type of keywords that the firm is buying is generally referred to as branded keywords.

A branded keyword can be defined as any query of a database through a search engine such as Google which includes the name of the business firm or company.

This ultimately implies that, a branded keyword is any query or search phrases that combines the name of a firm or brand and other branded terms associated with the firm such as product name, type, motto etc. Branded keywords is a strategic marketing process or approach which helps to make business firms or brands available to online customers and the target market or audience.

8 0

2 years ago

A stock index is valued at $800 and pays a continuous dividend at the rate of 3% per year. The 6-month futures contract on that

yan [13]

Answer:

Possible options:

A. 38

B. 40

C. 42

D. There is no arbitrage opportunity.

Answer is B

Explanation:

With the given data, the no-arbitrage futures price should be; 800e(0.025-0.03)*0.50 =798−Since the market price of the futures contract is lower than this price there is an arbitrage opportunity. The futures−contract could be purchased and the index sold.−

Arbitrage profit is 798 - 758 = 40

8 0

2 years ago

Which of the following concerns about the national debt are substantive? Check all that apply.

Levart [38]

Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Explanation:

When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.

A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.

3 0

2 years ago

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the produ

BARSIC [14]

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of Units in beginning work in process and units started.

Answer: Option (2) is correct

<u>Explanation:</u>

The weighted average process costing system is used in case of those processes of production which are standardized.

The beginning cost of work in the process is added to the cost during the period and then it is divided by total equivalent units to arrive at the average cost per unit. Now the equivalent units for material at Malcolm would be units in the beginning work in process and the units started.

7 0

2 years ago