Do you believe it is good that there are no trade barriers within the states of the U.S.? Even though wages and cost of production are lower, sometimes much lower, in other states is it good we continue this free trade?

Consider the Stark effect with a constant external electric field for the states n=3 of the Hidrogen atom without considering spin. Using perturbation theory for degenerated states in first order, find the eigenvalues and their degeneration.

A poll surveyed people in six countries to assess attitudes toward a variety of alternate forms of energy. Suppose the data in the following table are a portion of the poll's findings concerning whether people favor or oppose the building of new nuclear power plants.

(a)

How large was the sample in this poll?

(b)

Conduct a hypothesis test to determine whether people's attitude toward building new nuclear power plants is independent of country.

State the null and alternative hypotheses.

H₀: The attitude toward building new nuclear power plants is not mutually exclusive of the country.
H_a: The attitude toward building new nuclear power plants is mutually exclusive of the country.H₀: The attitude toward building new nuclear power plants is not independent of the country.
H_a: The attitude toward building new nuclear power plants is independent of the country.    H₀: The attitude toward building new nuclear power plants is mutually exclusive of the country.
H_a: The attitude toward building new nuclear power plants is not mutually exclusive of the country.H₀: The attitude toward building new nuclear power plants is independent of the country.
H_a: The attitude toward building new nuclear power plants is not independent of the country.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Do not reject H₀. We cannot conclude that the attitude toward building new nuclear power plants is independent of the country.Reject H₀. We conclude that the attitude toward building new nuclear power plants is not independent of the country.    Reject H₀. We cannot conclude that the attitude toward building new nuclear power plants is independent of the country.Do not reject H₀. We conclude that the attitude toward building new nuclear power plants is not independent of the country.

(c)

Using the percentage of respondents who "strongly favor" and "favor more than oppose," which country has the most favorable attitude toward building new nuclear power plants?

Great BritainFrance    ItalySpainGermanyUnited States

Which country has the least favorable attitude?

Great BritainFrance    ItalySpainGermanyUnited States

A poll surveyed people in six countries to assess attitudes toward a variety of alternate forms of energy. Suppose the data in the following table are a portion of the poll's findings concerning whether people favor or oppose the building of new nuclear power plants.

(a)

How large was the sample in this poll?

(b)

Conduct a hypothesis test to determine whether people's attitude toward building new nuclear power plants is independent of country.

State the null and alternative hypotheses.

H₀: The attitude toward building new nuclear power plants is mutually exclusive of the country.
H_a: The attitude toward building new nuclear power plants is not mutually exclusive of the country.H₀: The attitude toward building new nuclear power plants is not mutually exclusive of the country.
H_a: The attitude toward building new nuclear power plants is mutually exclusive of the country.    H₀: The attitude toward building new nuclear power plants is not independent of the country.
H_a: The attitude toward building new nuclear power plants is independent of the country.H₀: The attitude toward building new nuclear power plants is independent of the country.
H_a: The attitude toward building new nuclear power plants is not independent of the country.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Do not reject H₀. We conclude that the attitude toward building new nuclear power plants is not independent of the country.Do not reject H₀. We cannot conclude that the attitude toward building new nuclear power plants is independent of the country.    Reject H₀. We conclude that the attitude toward building new nuclear power plants is not independent of the country.Reject H₀. We cannot conclude that the attitude toward building new nuclear power plants is independent of the country.

(c)

Using the percentage of respondents who "strongly favor" and "favor more than oppose," which country has the most favorable attitude toward building new nuclear power plants?

Great BritainFrance    ItalySpainGermanyUnited States

Which country has the least favorable attitude?

Great BritainFrance    ItalySpainGermanyUnited States

Proterra was founded by Dale Hill in 2004 with a vision to design and manufacture world-leading, advanced technology heavy-duty vehicles powered solely by clean domestic fuels. After launching a first successful fleet of alternative fuel buses in the 1990s, Proterra focused on developing the 'bus of tomorrow.' Proterra Inc. also designs and manufactures heavy-duty vehicles including EcoRide, a battery electric and zero-emissions bus, and Proterra Catalyst, an electric transit vehicle. The company manufactures a TerraFlex Energy System that enables customers to select amount and type of energy storage to meet specific route requirements, plus TerraVolt fast-charge batteries, TerraVolt extended range batteries, an on-route charge station and in-depot charging services. It offers financing solutions, route simulation analysis, battery lifecycle management, and standard warranty services (Proterra, 2015). It serves customers throughout the United States. The company is privately owned, but is in the process of becoming a public corporation. With this expectation, the firm's chief executive officer (CEO) has asked for determination of which of two companies appears to be a better peer to compare itself against, New Flyer Industries, Inc. (a Toronto-based firm), or Tesla. Tesla Motor Vehicles designs, develops, manufactures, and sells high-performance fully electric vehicles and stationary energy storage units similar to certain Proterra products. Tesla Motors has subsidiaries in North America, Europe and Asia, with the primary purpose of these subsidiaries being to market, manufacture, sell and/or service their vehicles (Tesla Motors, 2016). New Flyer was founded in 1930, and is now the largest transit bus and motorcoach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States. It is North America's heavy-duty transit bus leader and offers clean diesel, natural gas, diesel-electric hybrid, electric-trolley and battery-electric. Information regarding Tesla and New Flyer is given here, for your use in comparing these firms.

Tesla Versus New Flyer

Significance

Measure

TSLA

NFI

Total Market Value of all outstanding shares.

Market capitalization

33.63B

1.831B

Number of outstanding shares currently held by all shareholders.

Outstanding shares of stock

147.28M

59.742M

A Beta coefficient indicates the systemic risk that an asset has relative to an average asset. A risk-free asset has a Beta of zero.

Beta

1.28

0.16

The return the firm must earn on its existing assets to maintain the value of its stock, and the required return on any investments by the firm that have essentially the same risks as existing operations.

WACC

9.03%

8.34

PE ratio divided by expected future earnings growth (after multiplying the growth rate by 100).

PEG Ratio

18.47

0.5

A measure of profit per dollar of assets.

ROA

-7.04%

6.26%

A measure of how the stockholders fared during the year.

ROE

-113.20%

13.21%

A measure of how much investors are willing to pay per dollar of current earnings. Higher PEs are often taken to mean the firm has significant prospects for future growth.

P/E Ratio

-29.17

25.3

Ratio of Net income to sales.

Profit Margin

-23.91%

-3.83%

References

Bloomberg. United States rates and bonds.

Federal Reserve. (2016). Federal Reserve economic data.

Korosec, K. (2015). This startup is gearing up to be the Tesla of electric buses. Fortune Magazine.

Proterra. (2015). About Proterra.

Securities and Exchange Commission. (n.d.) SEC.gov home.

Tesla Motors. (2016). Tesla Motors, Inc. 2016 annual report.

Yahoo. (n.d.) Yahoo finance.

Assume that you are the finance manager for Proterra and you have been asked to provide an analysis of the following issues, as the firm develops benchmarks for its cost of capital (WACC) estimates. The firm's CEO has instructed you to use the pure play approach to estimate its WACC cost of capital, and has chosen Tesla Motors (ticker symbol TSLA) and New Flyer (ticker symbol NYI.TO) as possible representative peers (Korosec, 2015). You will deliver your analysis in the form of a memo, or formal communication addressed to the firm's CEO. In this discussion, you are to present this memo in which you:

QUESTION:

Using the information provided here and speaking of Finance Director of Proterra, brief the firm's CEO, analyzing: Analyze the relative applicability or inapplicability of utilizing these firms as peers to evaluate Proterra's likely cost of capital, given what you know about Proterra, Tesla and New Flyer, and the lessons of Capital Market History.

Short-Run Exchange Rate Risk

Assume you have a trade receivable denominated in a foreign currency of your choice that is payable to you by your customer in 6 months. At the current spot rate the trade receivable is worth the equivalent of US$5,000,000. To find the current spot rate for the chosen currency pair go to http://www.hsbcnet.com/gbm/fxcalc-disp.[1] Enter 5,000,000 in the “Convert” box, United States dollar in the “From:” box, and your chosen currency in the “To:” box. Click on “Go” for the spot rate, which will be expressed in European terms, that is, units of foreign currency per one US dollar. Enter the name of the chosen currency, the date the site is accessed, and the spot rate in European terms in the table below.

To find a 180 day forward rate for the currency pair, go to http://www.hsbcnet.com/gbm/fwcalc-disp#. For “Amount” you can just enter 1 and enter US dollars in the “Buy” box and the foreign currency in the “Sell” box. For “Value Date” enter “6 Months” and click “Go” for the forward rate. (Clicking on the Inverse box will switch the rate from European to American terms.) Enter the one-year forward rate in the table below. Make sure the forward rate is expressed in the same way as the forward rate, that is, in European terms.

Based on the data above, answer the following questions:

Long-Run Exchange Rate Risk

Assume you have undertaken a 3-year investment abroad with expected cash flows denominated in your chosen currency. At the current spot rate those cash flows are expected to provide a positive net present value (NPV) in US dollar terms. Based on relative purchasing power parity you are asked to estimate future spot rates over the next three years based on comparative inflation data.[2] With that data complete the table below.

Using the data above and textbook equation (18.3) E(S_t) = S₀ ∙ [1 + (h_FC - h_US)]^t and assuming the estimated inflation rate in Year 1 also holds for Years 2 and 3, please respond to the following:

[1] Please note currencies are grouped according to their region: Americas (where the United States dollar may be found), Asia-Pacific, Europe, and MENA. Please advise your instructor should this or any other link in the assignment be broken.

[2] Sources of Inflation data include http://stats.oecd.org/ for OECD countries and http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG at the World Bank site. It is viewed important to be consistent in the definition and source of inflation numbers for the US and the other currency that you use for the relative PPP equation. The most basic definitions of inflation are consumer price index (CPI), producer price index (PPI), and GDP deflator. Estimates of the next year’s inflation are preferred but it is also common to use the past year’s inflation as the best estimate of next year’s and subsequent years’ inflation. You are encouraged to share any useful websites for this data you find with the class.

An investor is reviewing two proposals, assuming similar risk profiles and a 14% required return, which one should the investor buy? Why?

Lee Vista:

Purchase Price: $464,000

Cash flows from operations:

Year 1 $48,000

Year 2 $49,440

Year 3 $50,923

Year 4 $52,451

Year 5 $54,025

Cash flow from sale on year 5 $560,000

Colony Park:

Purchase Price: $500,000

Cash flows from operations:

Year 1 $56,000

Year 2 $57,400

Year 3 $58,835

Year 4 $60,306

Year 5 $61,814

Cash flow from sale on year 5 $597,000

Where are the deer? Random samples of square-kilometer plots were taken in different ecological locations of a national park. The deer counts per square kilometer were recorded and are shown in the following table.

A)  Find SS_TOT, SS_BET, and SS_W and check that SS_TOT = SS_BET + SS_W. (Use 3 decimal places.)

B) Find d.f._BET, d.f._W, MS_BET, and MS_W. (Use 4 decimal places for MS_BET, and MS_W.)

C) Find the value of the sample F statistic. (Use 2 decimal places.)