Provide detailed answers to the attached questions.Thank you.

A1. Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian con- sumers buy 1 million televisions per year, of which 400 000 are produced domestically and 600 000 are imported. a. Suppose that a technological advance among Japa- nese television manufacturers causes the world price of televisions to fall by $100. Draw a graph to show how this change affects the welfare of Canadian consumers and Canadian producers and how it affects total surplus in Canada. b. After the fall in price, consumers buy 1.2 million televisions, of which 200 000 are produced domes- tically and 1 million are imported. Calculate the change in consumer surplus, producer surplus, and total surplus from the price reduction. c. If the government responded by putting a $100 tariff on imported televisions, what would this do? Calculate the revenue that would be raised and the deadweight loss. Would it be a good policy from the standpoint of Canadian welfare? Who might support the policy? Who might oppose it? d. Suppose that the fall in price is attributable not to technological advance but to a $100 per television subsidy from the Japanese government to Japanese industry. How would this affect your analysis?36. (3 Points) A stock has a Beta of 1.4, the risk free rate is 2%, and the expected market return is 9%. What is the expected return on the stock? a. 9.8% b. 11.8% c. 12.6% d. 14.6% 37. (3 points) What are the following call options' prices given the following time premiums if the price of the underlying stock is $55? Option strike price Premium Call at $50 $1.00 Call at $55 2.00 Call at $60 0.50 a. Price of $50 Call b. Price of $55 Call c. Price of $60 Call 38. (4 points) A convertible bond has the following features: Face Value: $1,000 Maturity: 20 years Annual coupon: $70 Conversion Price: $80 a. The bond may be converted into how many shares? b. What is the current value of the convertible as a bond if prevailing interest rates are 6%? c. What is the current value of the convertible as a stock if the current stock price is $82 per share? d. Based on (b) and (c) and assuming a market premium of $30, what should the current price of the bond be? 39. (6 points) W Inc. currently has EPS of $10.00 and a payout ratio of 25%. Analysts predict that the dividend should grow 8% per year for the foreseeable future. The 90 day T Bill rate is 2%. The S&P 500 is expected to return 12% over the next year. ABC has a Beta of 1.3. a. What is the current dividend per share for W? b. Using the CAPM, what is the required return for W? c. Using the above information and the Dividend Growth Model, what is the expected current price of W to the nearest dollar? 40. (3 points) A bond has a 5% coupon and 10 years to maturity, what is its current price if the current market rate is 6%. 41. (3 points) A bond portfolio has a total face value and market value of $1,000,000, an average fixed coupon rate of 6% and average maturity of 9 years. Market rates suddenly increase 2% affecting all bonds in the portfolio equally. Based on the averages of the portfolio, what is the expected loss of market value (to the nearest dollar) of the portfolio resulting from this rate increase? a. No loss b. - $124,938 c. - $134,202 d. - $1,000,0001. Suppose that the market for hotel rooms (one-night stay) has the following supply and demand schedules: Price of a Quantity demanded Quantity supplied room (thousands) (thousands) $150 100 10 $160 90 15 $170 80 20 $180 70 25 $190 60 30 $200 50 35 $210 40 40 $220 30 45 $230 20 50 $240 10 55 $250 0 60 a) Using this information, draw the demand curve and the supply curve for hotel rooms. b) What is the equilibrium price and quantity for rooms? c) Assume the government levies a tax of $30 per night. What is the price that consumers will pay for a room now? d) What is the price that hotels will receive when someone stays for a night? e) Illustrate the effect of this tax in your diagram from part a. f) Calculate the government revenue raised by this tax. diagram. g) Is the market efficient. with the $30 excise tax? Explain. Illustrate your answer with a