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GMCR’s warns of the potential impact of the price of coffee on the gross profit margin. To combat this, GMCR had made a number of purchase commitments to ensure an adequate supply of coffee (GMCR Annual Report, 2010). The market price for coffee is impacted by numerous factors including weather, economy, and competition. It is vital that GMCR continue to take proactive measures to secure against unforeseen spikes in coffee prices. The price of coffee does not only impact GMCR’s ability produce coffee for the Keurig brewer under its namesake but impacts their partner suppliers as well. GMCR purchases coffee from brokers, farms, estates, and cooperative groups and essentially diversifies its coffee supply, reducing some supply risk (GMCR Annual Report, 2010).

1. What were the costs and benefits to stakeholders of the actions taken by Massey Energy and its managers?

Through the 1980s and early 1990s, as American Barrick’s reserves and financial strength improved and the market for gold-hedging vehicles matured, the company’s risk management activities grew in size and complexity. The firm used every instrument available to manage its gold price risk.

Furthermore, the gold rush helped the rise of the cattle industry as it made cattle men motivated to sell their herds, this helped it develop because it meant that more cows were being sold so cow towns would have to expand or create new

The daily life of a miner was far from perfect. The way the papers and other means of propaganda had portrayed getting rich quick, but it was far from easy. All the equipment that was needed to start out as a miner was for the most part outrageous. The earning wages from gold was” sixteen dollars an ounce” pg.8. Even so, the work was backbreaking. There was swarms of minors trying to get rich quick. To many miners that traveled to get a piece of the precious metal they where resorted to taking land from previous land owner just to get ahead in the Gold Rush. Not to mention that the living conditions where also outrageous. The “rentals of hotels and other business structures, whether of boards or of canvas, reached even dizzier heights than did commodity prices” pg.8. This spaces where set prices at 3,000 dollars a month or 40,000 dollars for a year, there was also other prices around the area of San Francisco. And in some cases miners where resorted to living in a room filled to the brim with other miners. This lead to very poor conditions for any one to live in. But nothing was better then being rich in a few months or

Mr. Lee and the other executives expect to generate a higher profit from hedging since they have majority of their personal wealth invested into the firm. The focus of any hedging program should always be to minimize the firm’s risk of loss, but that does not mean the they will

First, I would like to consider the economic theory behind the gold rush and explain why on the surface; it is quite simple. Consider a modern theoretical case. Say a family of four is living in Cincinnati, Ohio and the main earner of the family works for a tool manufacturing company in Cincinnati. Suppose that the company decides during their yearly employee reviews that they aren’t going to give this certain individual a pay raise for the next year; also suppose that the employee does not see themselves climbing up the pay scale any further. Now suppose that this person is offered a thirty thousand dollar per year raise if they move out to Los Angeles, California for a new machine related job. Assuming

the stock is a put option on the firm's assets, and risky projects increase the exercise price of the option.

10. The current price of silver is $750. Storage costs are $8 per ounce per quarter payable in advance. The interest rate is 12% p.a. with continuous compounding. Calculate the futures price of silver for delivery in six months (to two decimal places).

1. Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead?

7. Discuss how the compliance and governance changes are likely to impact the future profits and shareholder value at Baker Hughes.

A breakdown of our overall long-term strategy as well as the year-by-year decisions and review will follow in order to assess how well we met investor expectations as well as attempting to beat

7. Discuss how the compliance and governance changes are likely to impact the future profits and shareholder value at Baker Hughes.

Gold in the ground occurs either mixed with loose materials (alluvial) or as grains locked amongst other mineral grains in solid rock. Some gold may be chemically combined with other elements in the mineral grains. To obtain a sellable gold end-product, ore must be mined and concentrated. The gold must be liberated from other interlocking minerals then separated from all other contaminants.

Oil prices variable is also significant at 5% significance level. These means that the with a unit increase in the prices of oil future contracts will increase the price of gold by $.80 cents,