Bhp operating pro?t from copper

Assignment Help Finance Basics
Reference no: EM133057513

BHP Billiton is the wortd's largest mining ?rm. BHP expects to produce 1.50 billion pounds of copper next year, with a production cost of $0.90 per pound.

a. What will be BHP's operating pro?t from copper next year if the price of copper is $1.20, $1.40, or $1.60 per pound, and the ?rm plans to sell all of its copper next year at the going price?

b. What will be BHP's operating pro?t from copper next year if the ?rm enters into a contract to supply copper to end users at an average price of $1 .35 per pound?

c. What will be BHP's operating pro?t from copper next year if copper prices are described as in part (a), and the ?rm enters into supply contracts as in part (b) for only 50% of its total output?

Reference no: EM133057513

Questions Cloud

Calculate wacc for companies : a. The following balance sheet and information are given for Pavone Company (VC):
What is the account balance after four years : If $10,000 is invested at 6% annual interest compounded yearly, what is account balance after 4 years assuming no additional deposits or withdrawals are made
Prepare journal entry to record the sales and related tax : At December 31st taxable sales for Tory Baking was $10,000. The State sales tax on baked goods is 6%. Prepare journal entry to record the sales and related tax
Truck collision with total loss amount : The underwriter, following company underwriting guidelines to retain only $5 Million liability risk, placed a facultative excess of loss reinsurance contract fo
Bhp operating pro?t from copper : BHP Billiton is the wortd's largest mining ?rm. BHP expects to produce 1.50 billion pounds of copper next year, with a production cost of $0.90 per pound.
Critical thinking-communication management course : What are the fundamental ethical dilemmas faced by Volkswagen's managers and how communication was part of it?
What is the irr of project : McKeekin Corp. has a project with the following cash flows:
Calculate cost of goods sold and Ending Inventory in units : Calculate cost of goods sold and Ending Inventory in units and dollars, assuming Johnson uses: A periodic inventory system and FIFO cost formula
Variance of portfolio of internationally diversified stocks : Why is the variance of a portfolio of internationally diversified stocks likely to be lower than the variance of a portfolio of US stocks?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine which bond you purchase

Given the opportunity to invest in one of the three bonds given below, which would you purchase? Suppose an interest rate of 7 percent.

  What is the most you should pay

You are considering an investment that will provide the following results. If the rate of interest is 8%, what is the most you should pay for this investment?

  Analyse the asx listed company

Briefly describe a likely average risk capital budgeting project for the company - Incorporate the company's context within your evaluation and compare with a competitor or other relevant benchmark.

  Defines the scope and strategy

Analyzes your business topic, defines the scope and strategy for how you will go about your capstone project, incorporates your BetterUp assessment

  Discuss the efficient market hypotheses

Discuss the efficient market hypotheses

  What will be the total 2012 dividend payout in dollars

If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate, what will be the total 2012 dividend payout in Dollars? What is the 2012 dividend payout ratio if the company increases its dividends at 8%?

  Yu have been provided with the following data d0 080 p0

rivoli inc. hired you as a consultant to help estimate its cost of common equity. you have been provided with the

  Identify two financial intermediaries

Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?

  How many round trips will it take for you

You observe that the risk-free rate in markets with a term to maturity of 21 years, r21, is1.2% per year and that the value today

  Determine the pressure and density at a point

What effect do temperature induced density changes have on the lifting power of a rigid lighter-than-air craft?

  When creating a budget for an organization it is important

when creating a budget for an organization it is important to consider several outputs. these outputs depend on the

  What is the purpose of an assignment of invention agreement

What is the purpose of an assignment of invention agreement? Is it a good idea for firms to ask their employees to sign assignment of invention agreements?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd