Southern fuels co. and langham-hill petroleum, inc. are both in the business of buying and selling large quantities of petroleum products. in october, the parties entered into a fixed price contract wherein southern agreed to purchase 4.2 million gallons of no.2 fuel oil at a specified price per gallon to be delivered in four monthly installments. the contract included a force majeure clause. the first three monthly shipments of oil were purchased by southern as agreed. in january of the next year, the price of oil in the world market collapsed as a result of saudi arabian attempts to regain its share of the world oil market. southern refused to purchase the last shipment under the contract. southern informed langham-hill that because the drop in world oil prices was caused by saudi arabians who were "outside southern's control" that it was invoking the force majeure clause. langham-hill sued for damages in the amount of $306,075. what is a force majeure clause? southern's basic argument is that it can now buy oil at a substantially lower price. will southern succeed on this basis?

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

What are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.