Due to the regulatory environment in the rail industry, j & l railroad's profitability depends on the price of diesel fuel in this case, the student must decide how much of the next year expected fuel demand should be protected, and how it should be protected. The j&l railroad began in 1985 after attending my first model railroad show i was hooked for good the first layout was constructed in one half of a two car garage and featured a drop-leaf table to support the main yard. J&l railroad: the board meeting jeannine matthews took her seat in j&l's boardroom at 9:50 am it was tuesday, april 28, 2009, and she had worked through the weekend and all day monday preparing her recommendations on j&l's policy for hedging its diesel fuel costs.
This brief case could be the end of the class discussion on j & l railroad [uv0251] in preparation for the next class, or if students have more experience with the coverage and option pricing, the instructor you can choose to cover both cases in one class period. Because of the regulatory environment in the railroad industry, j&l railroad's profitability is dependent upon the price of diesel fuel in this case, the student must decide how much of next year's expected fuel demand should be hedged and how it should be hedged. J&l railroad had most of its revenue fixed for a long term, because it was industry practice for railroads to enter into long-term fixed-price contracts with their freight customers on the other hand, fuel cost was a large cost item for j&l, and fuel prices have high volatility.
J&l railroad (j&l or company) formed one of the largest railroads in the country by combining the jackson and lawrence rail lines considered a class i railroad, j&l operated approximately 2,500 miles of line throughout the west and the midwest. Jl innovative design is the premier manufacturer of unique ho and n scale structure kits, billboard signs, poster signs, vehicles, and creative detail sets. Paducah & louisville railway, inc 200 clark street • paducah, ky 42003 phone: 270-444-4300. Like the builder names, the railroad company names are also abbreviated in most cases, i used the railroad's most common abbreviation, but there are many that might not be obvious.
J&l railroad case solution,j&l railroad case analysis, j&l railroad case study solution, question 1 did matthews do a good job of summarizing the pros and cons of using nymex contracts versus using the risk management products offered. J&l railroad case: the questions are as follows hedging strategy for commodity risk (j&l railroad (uva-f-1053)) study questions: 1 should j&l hedge all of its exposure to diesel fuel for the ensuing year. This short case could be handed out at the end of class discussion on j&l railroad [uva-f-1053] in preparation for the following class, or if students are more experienced with hedging and.
J&l railroad j&l railroad was founded in 1928 and although publically owned, is one of only a few class i railroads still manger by the original founding families along with many other firms within the industry, j&l has invested large amounts of capital in order to increase efficiency within the company. J&l narrow gauge railroad has 809 members the j&l narrow gauge railroad is a part of the youngstown steel heritage museum in youngstown, oh built to. Tutorials for question #00082936 categorized under business and general business. 1 j & l should hedge only some of its exposures to diesel fuel although there are several financial instruments available for j & l to hedge against the risk of rising diesel fuel prices, these instruments still have their own downsides and possibly their own risks.
J&l railroad it was saturday, april 25, 2009, and jeannine matthews, cfo at j&l railroad (j&l), was in the middle of preparing her presentation for the upcoming board of directors meeting on tuesday. J l (jordan) james computer programmer phone: 270-444-4416 e-mail: [email protected] appalachian & ohio railroad evansville western railway. J&l railroad was founded in 1928 when the jackson and lawrence rail lines combined to form one of the largest railroads in the country considered a class i railroad.