The Canadian Parliament is considering imposing a tariff on the importation in Québec of bicycles made in France in order to protect its cycle industry. Let us further assume that Québec is considered to be a “small country” in this industry. At present, there is no tariff or other import barrier. Canada (all provinces) produces 1.0 million bikes a year and imports another 0.4 million bikes a year. Currently, the world price of bicycles is $400 a unit. Parliament wants to impose a $40 import tariff per bike.
To conduct this analysis, redraw Figure 8.4 of Pugel’s book, as a starting point. Choose carefully the slopes of the supply and demand curves. Remove the book’s numbers and put in the numbers given here.
1. Consumer surplus
2. Producer surplus
3. Government revenue
4. Net national loss from the tariff
5. Effective rate of protection if in addition to the proposed tariff on bikes, there is also a 5% tariff on inputs (frame, gears, etc.)
6.Maximum net national loss and under which circumstances
7.Minimum net national loss and under which circumstances
8.Do you recommend Parliament to go ahead with their plan? Why or why not
In: Economics
Thomsen Company just concludes negotiations for the sale of telecommunication equipment to Churchill, a British firm, for ?1,000,000
The sale is made in March with payment due three months later in June
The financial and market information is as follows:
- Spot exchange rate: $1.7640/?
- Three-month forward rate: $1.7540/?
- Cost of capital for Thomsen company: 12%
- U.K. three-month deposit (borrowing) interest rate: 8% (10%)
- U.S. three-month deposit (borrowing) interest rate: 6% (8%)
- Put option expired in June for ?1,000,000 with the strike price $1.75/? ($1.71/?) is quoted as 1.5% (1.0%) premium or (2) a put option with the strike price of $1.71/? and the premium of 1%
- Thomsen’s foreign exchange advisory service forecasts that the spot rate after three months will be $1.76/?
- Thomsen’s minimum acceptable margin is at a sales price of $1,700,000, which implies the budget rate, the lowest acceptable dollar per pound exchange rate, is at $1.70/?
Thomsen has four alternatives to manage transaction exposure:
- Remain unhedged
- Hedge in the forward market
- Hedge in the money market
- Hedge in the options market
Analyze the choices for Trident.
In: Finance
The iodination of acetone, CH3COCH3, in aqueous solution is catalyzed by the hydrogen ion H+:
I2+CH3COCH3H+⟶HI+CH3COCH2I
The reaction can be followed visually by adding starch. The purple starch-iodine complex forms immediately, then disappears when the iodine has been consumed. The kinetics of the reaction may be determined by recording the time required for the color to disappear, which is the time required for the iodine, I2, to be consumed.
The following data were acquired in an iodination experiment involving acetone. All reaction times are in terms of the rate of disappearance of I2.
| Trial | Volume of 0.0010 M I2 (mL) |
Volume of 0.050 M HCl (mL) |
Volume of 1.0 Macetone (mL) |
Volume of water (mL) |
Temperature (∘C) |
Reaction time (s) |
| A | 5.0 | 10.0 | 10.0 | 25.0 | 25.0 | 130 |
| B | 10.0 | 10.0 | 10.0 | 20.0 | 25.0 | 249 |
| C | 10.0 | 20.0 | 10.0 | 10.0 | 25.0 | 128 |
| D | 10.0 | 10.0 | 20.0 | 10.0 | 25.0 | 131 |
| E | 10.0 | 10.0 | 10.0 | 20.0 | 42.4 | 38 |
Calculate: What is the rate constant at 42.4 ∘C based on the data collected for trial E?
In: Chemistry
Researchers wish to know if the data they have collected provide sufficient evidence to indicate a difference in mean serum uric acid levels between normal individuals and individuals with Down’s syndrome The data consist of serum uric acid readings on 12 individuals with Down’s syndrome and 15 individuals without Down’s syndrome. The means are x1=4.5 mg/100 ml for those with Down’s syndrome and x2=3.4 mg/100 ml for those without. s1 = 1.0 and s2 = 1.2.
a. State whether the test is:
i) a two-sample t-test (independent samples)
ii) a matched pairs
iii) a two sample proportion test
b. Write H0 and H1
c. Using Minitab, list the test statistic the p-value your conclusion: reject H0 or do not reject H0. Note: if α is not provided, use a 0.05 significance level
d. Write a sentence that explains your conclusion in context with the claim. Include the significance level and p-value in this sentence.
e. Copy and paste the relevant Minitab output into the document. Answers alone are sufficient, you do not need to copy the exercise into the document.
In: Statistics and Probability
please use the temperature adjustment listed at the
bottom for part b as well. assume: steady state, constant temp and
pressure, ideal gas solution, B is insoluble in A, and Nb,z in gas
phase =0.
Evaporation of volatile liquid. A tank with its
top open to the atmosphere contains liquid benzene. The
tank and atmosphere are at 25 oC. The inner diameter of the
cylindrical tank is 1.0 m, the height of the tank is 3.0 m, and the
liquid level is at 0.5 m from the inside bottom of the tank.
Assume the gas space inside the tank is stagnant and
that the methanol vapor is immediately dispersed into the
atmosphere once outside of the tank.
a) What is the evaporation rate of benzene from the tank, in kg/day, at 25 oC?
b) What is the evaporation rate of benzene from the tank, in kg/day, at 35 oC?
c) Would you expect the evaporation rate to be a linear function of temperature? Explain.
Hints: Note that the quantity P•DAB for binary gas systems are given in Appendix J, at specified temperatures, where P is the pressure in the system. To calculate the DAB at a different temperature, you can use the correction of (T2/T1)1.75.
In: Chemistry
Phoenix Corp. faltered in the recent recession but is
recovering. Free cash flow has grown rapidly. Forecasts made in
2019 are as follows:
| ($ millions) |
2020 |
2021 |
2022 |
2023 |
2024 |
| Net income | 2.1 | 3.1 | 5.4 | 5.90 | 6.2 |
| Investment | 2.1 | 2.1 | 2.3 | 2.5 | 2.5 |
| Free cash flow | 0 | 1.0 | 3.1 | 3.4 | 3.7 |
Phoenix’s recovery will be complete by 2024, and there will be no
further growth in net income or free cash flow.
a. Calculate the PV of free cash flow, assuming a
cost of equity of 8%. (Do not round intermediate
calculations. Enter your answer in millions
rounded to 2 decimal places.)
b. Assume that Phoenix has 12 million shares
outstanding. What is the price per share? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
c. Confirm that the expected rate of return on
Phoenix stock is exactly 8% in each of the years from 2020 to 2024.
(Hint: First, calculate the PV of all future cash flows
starting in each year. Round your answer to 2 decimal
places.)
In: Finance
Part 1: A cart with mass 0.30 kg and velocity 0.10 m/s collides on an air-track with a cart with mass 0.40 kg and velocity -0.20 m/s. What is the final velocity in m/s of the two carts if they stick together? vf=
Part 2: What is the maximum height y that the pendulum can reach in this experiment? a) L b) y0-L c)0.3m d) y0+L e) y0f)0.2m
Part 3: A pendulum has a length of L = 1.0 m What is its period in s? T=
Part 4: Suppose that you wanted to reduce the resonant frequency of the system, what could you do? a) reduce the mass b)increase the damping c)increase the spring constant d)reduce the drive frequency
Part 5: Suppose that the temperature of the bulb in the Charles’ law apparatus increases from 0.0°C to 100.0°C. By what multiplicative factor will the pressure increase by? P2/P1=
Part 6: Starting at 20.0°C, to what temperature in °C would you have to raise the Charles law apparatus to double the pressure? T2=
In: Physics
1A. An analyst has collected the following information regarding Christopher Co.: · The company's capital structure is 70 percent equity, 30 percent debt. · The yield to maturity on the company's bonds is 4 percent. · The company's year-end dividend (D1) is forecasted to be $1.0 a share. · The company expects that its dividend will grow at a constant rate of 4 percent a year. · The company's stock price is $25. · The company's tax rate is 40 percent. · The company anticipates that it will need to raise new common stock this year. Its investment bankers anticipate that the total flotation cost will equal 10 percent of the amount issued. Assume the company accounts for flotation costs by adjusting the cost of capital. Given this information, calculate the company's WACC in percentage. Round it to two decimal places.
1B. New Mexico Lumber recently reported that its earnings per share were $3 .00. The company has 300,000 shares of stock outstanding. The company's interest expense was $ 600,000. The corporate tax rate is 40 percent. What was the company's operating income (EBIT)? Round it to a whole dollar, and do not include the dollar sign.
In: Finance
Consider a simple electrical circuit where you charge a capacitor through a resistor by connecting a battery (closing the switch) at time t=0.
The charge Q on the capacitor is related to the current I by dQ/dt=I. Furthermore, by Kirchhoff’s law, V – RI – Vc =0, and the charge Q on the capacitor is Q=CVc, where C is the capacitance. That can be combined to give the differential equation
dQ/dt = V/R - Q/RC
The analytic solution is Q(t)=CV(1 – exp(-t/(RC)). Write a MATLAB code that solves the differentia equation with the Euler forward method, Predictor-Corrector method, and Runge Kutta 4th Order. Use values of 1F for the capacitor, 10 Ohm for the resistor, and 10 V for the battery. Run the code from 0 to 10 seconds. Use values for dt of 1.0, 0.1, and 0.01. For each of the runs calculate the percentage error at the end, and make a table of the errors. Discuss and submit the table and only the first plot for Euler/dt=1. Which dt and how many step do you need with each of the methods to achieve an accuracy of better than 0.01%?
In: Physics
Glucose are stored as glycogen in muscle cells, from which it can again be mobilized during exercise.
a) Write down the partial reactions as well as the net yield for the conversion of glucose-6-phosphate to glycogen and for the conversion of glycogen to glucose-6-phosphate.
b) Calculate the energy required for the consumption of the total process of converting glucose-6-phosphate to glycogen and back to glucose-6-phosphate expressed as energy-rich phosphate bonds (ATP equivalents). ΔG0’ for the reaction: ATP + H2O → ADP + Pi = –30.5 kJ∙mol-1.
c) Calculate ΔG’ for the reaction at 25 °C and pH 7, when [ATP] = 5 mM, [ADP] = 0.5 mM and [Pi] = 1.0 mM. Phosphocreatin constitutes a small extra storage of energy within muscle cells, and is formed from phosphorylation of creatin. The reaction is catalyzed by creatine kinase and ΔG0’ for the reaction is +2.3 kJ∙mol-1 (progressing towared the formation of phosphocreatin).
d) Calculate how much phosphocreatin formed relative to creatin at equilibrium in the creatin kinase catalyzed reaction (assuming the same temperature, pH and concentrations of ATP and ADP as indicated in the previous question).
In: Biology