Calculate the Net Profit Generated by Toby Inc

question 54

Multiple Choice

Calculate the net profit generated by Toby Inc.for a return of 8.6% from sales of $240 million.

• A)$20.6 million
• B)$78.4 million
• C)$120 million
• D)$206 million
• E)$12.6 million

---

Definitions:

Treasury Bond Futures

Futures contracts based on the value of U.S. Treasury bonds, used by traders to speculate on or hedge against future changes in interest rates.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Wheat Futures

Financial contracts obligating the buyer to purchase wheat, and the seller to sell wheat, at a predetermined future date and price.

S&P 500 Index Futures

Agreements that enable investors to forecast and protect against fluctuations in the market by speculating on the future worth of the S&P 500 index.