Homework Answers
Average cost of equity of Walmart = Risk free rate + Beta * Market risk premium
From the regression output,
Beta of Walmart = -1.078
Average Cost of Equity = 3.8% + (-1.078)*7.8% = -4.61 %
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Go to the Quiz 5 Spreadsheet. Go to the WMT 60 tab. It contains the results...
what is after tax weighted average cost of capital QUESTION 5 Go to the Quiz 5 Spreadsheet (Quiz 5 Blackboar...
what is after tax weighted average cost of capital
QUESTION 5 Go to the Quiz 5 Spreadsheet (Quiz 5 Blackboard Worksheet.xls) Go to the Walmart Debt Schedule tab. Assume the weighted average after-tax cost of debt is 2.55%. Use the yahoo finance published beta of Walmart as 0.65. Assume the long-run equilibrium risk free rate is 3.80% and that the long run equilibrium market risk premium is 7.80%. Compute the after-tax weighted average cost of capital. The appropriate result is:...
Calculate the 95% prediction interval of y when x=5 using the 2000 pairs Mean of x...
Calculate the 95% prediction interval of y when x=5 using the 2000 pairs Mean of x = 4.51 Regression Statistics Multiple R 0.012848 R Square 0.000165 Adjusted R Square -0.00034 Standard Error 2.869737 Observations 2000 ANOVA df SS MS F Significance F Regression 1 2.716416 2.716416 0.329847 0.565814 Residual 1998 16454.31 8.235388 Total 1999 16457.02 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 4.509054 0.119572 37.70997 1.7E-235 4.274555 4.743552574 4.274555 4.743553 X 0.012884...
1st regression analysis 2nd regression analysis 1. Analyze the two regression analysis's above ...
1st regression analysis
2nd regression analysis
1. Analyze the two regression analysis's above and make
a recommendation on if the organization should increase, decrease,
or retain their pricing and why?
2. What happens to the dependent variable Y if the price
X1 decreases in the second regression analysis?
SUMMARY OUTPUT Y=UNITS SOLD X=PRICE Regression Statistics Multiple R R Square Adiusted R S Standard Error Observations 0.874493978 0.764739718 0.756026374 159.2178137 29 quare ANOVA df MS Significance F 1 2224908.261 2224908.26187.76650338 5.64792E-10...
What is the coefficient? What is the standard error? What is the z-statistic? Is the coefficient...
What is the coefficient?
What is the standard error?
What is the z-statistic?
Is the coefficient sufficiently different from zero? How about
one? Explain.
SUMMARY OUTPUT Regression Statistics Multiple R 0.58175248 R Square 0.33843594 Adjusted R S 0.31393357 Standard Err 1.1991813 Observations 29 ANOVA df SS MS Significance F 0.000932269 Regression 1 19.86268888 19.86268888 13.8123745 Residual 38.82696629 27 1.438035789 Total 58.68965517 28 Coefficients Standard Error P-value t Stat Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept -0.0202247 0.223805467 -0.090367404...
Hi I was wondering if i could have some help with some distribution questions. 1. show...
Hi I was wondering if i could have some help with some
distribution questions.
1. show where zero and one fall on a normal distribution based on
thedata.
2.is the coefficient sufficiently different than zero?
explain
3. is the coefficient sufficiently different than one? explain.
Regression Statistics Multiple R 0.806174983 0.649918103 R Square Adjusted R Square Standard Error Observations 0.636952107 13.57635621 29 ANOVA Significance F E SS MS df 9238.877183 9238.877 50.12481 1.30123E-07 Regression Residual 4976.571093 184.3174 27 14215.44828 Total...
Dep.= % WRK Indep.= % MGT SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R...
Dep.= % WRK Indep.= % MGT SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Significance df SS MS F F Regression 102.1488 148.9539 Residual Total 12.0000 Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Intercept % MGT 0.4543 SE CI CI PI PI Predicted Predicted Lower Upper Lower Upper x0 Value Value 95% 95% 95% 95% 67.0000 67.8474 65.8779 69.8169 72.0000 70.1189 68.2003 72.0375 76.0000 71.9361 69.7884 74.0838 Dep.= % MGT...
2. A financial analyst measures the monthly returns of two stocks (A and B) over a...
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HW # 5 Linear Regression: Use Data Analysis in Excel to conduct the Regression Analysis to...
HW # 5 Linear Regression: Use Data Analysis in Excel to conduct the Regression Analysis to reproduce the excel out put below (Note: First enter the data in the next page in an Excel spreadsheet) Home Sale Price: The table below provides the Excel output of a regression analysis of the relationship between Home sale price(Y) measured in thousand dollars and Square feet area (x): SUMMARY OUTPUT Dependent: Home Price ($1000) Regression Statistics Multiple R 0.691 R Square 0.478 Adjusted...
7,10,11 Based on the following regression output, what is the equation of the regression line? Regression...
7,10,11
Based on the following regression output, what is the equation of the regression line? Regression Statistics Multiple R 0.917214 R Square 0.841282 Adjusted R Square 0.821442 Standard Error 9.385572 Observations 10 ANOVA df SS MS Significance F 1 Regression 3735.3060 3735.30600 42.40379 0.000186 8 Residual 704.7117 88.08896 9 Total 4440.0170 Coefficients Standard Error t Stat P-value Lower 95% Intercept 31.623780 10.442970 3.028236 0.016353 7.542233 X Variable 1.131661 0.173786 6.511819 0.000186 0.730910 o a. 9; = 7.542233+0.7309 Xli o b....
A sample with two variables (x and y) is given in the table. According to the...
A sample with two variables (x and y) is given in the table. According to the sample, please develop an excel spreadsheet to calculate the missing values given in the table of “summary output” attached below. The excel spreadsheet needs to be submitted together with your assignment. Note: You can use “data analysis toolpak” to check your answers, but calculations should be based on the formulas that we learnt in module 2. x y 1.0 5.2 1.5 7.2 2.0 5.5...
what is after tax weighted average cost of capital
QUESTION 5 Go to the Quiz 5 Spreadsheet (Quiz 5 Blackboard Worksheet.xls) Go to the Walmart Debt Schedule tab. Assume the weighted average after-tax cost of debt is 2.55%. Use the yahoo finance published beta of Walmart as 0.65. Assume the long-run equilibrium risk free rate is 3.80% and that the long run equilibrium market risk premium is 7.80%. Compute the after-tax weighted average cost of capital. The appropriate result is:...
1st regression analysis
2nd regression analysis
1. Analyze the two regression analysis's above and make
a recommendation on if the organization should increase, decrease,
or retain their pricing and why?
2. What happens to the dependent variable Y if the price
X1 decreases in the second regression analysis?
SUMMARY OUTPUT Y=UNITS SOLD X=PRICE Regression Statistics Multiple R R Square Adiusted R S Standard Error Observations 0.874493978 0.764739718 0.756026374 159.2178137 29 quare ANOVA df MS Significance F 1 2224908.261 2224908.26187.76650338 5.64792E-10...
What is the coefficient?
What is the standard error?
What is the z-statistic?
Is the coefficient sufficiently different from zero? How about
one? Explain.
SUMMARY OUTPUT Regression Statistics Multiple R 0.58175248 R Square 0.33843594 Adjusted R S 0.31393357 Standard Err 1.1991813 Observations 29 ANOVA df SS MS Significance F 0.000932269 Regression 1 19.86268888 19.86268888 13.8123745 Residual 38.82696629 27 1.438035789 Total 58.68965517 28 Coefficients Standard Error P-value t Stat Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept -0.0202247 0.223805467 -0.090367404...
Hi I was wondering if i could have some help with some
distribution questions.
1. show where zero and one fall on a normal distribution based on
thedata.
2.is the coefficient sufficiently different than zero?
explain
3. is the coefficient sufficiently different than one? explain.
Regression Statistics Multiple R 0.806174983 0.649918103 R Square Adjusted R Square Standard Error Observations 0.636952107 13.57635621 29 ANOVA Significance F E SS MS df 9238.877183 9238.877 50.12481 1.30123E-07 Regression Residual 4976.571093 184.3174 27 14215.44828 Total...
2. A financial analyst measures the monthly returns of two stocks (A and B) over a twenty year period. Over that time period, stock A had an average return of 11% (per year) with a standard deviation of 20%. Over that same period, stock B had an average return of 13% with a standard deviation of 17%. The analyst estimates the CAPM for both stocks. The results are below: Stock A: SUMMARY OUTPUT Regression Statistics Multiple R 0.734020234 R Square...
7,10,11
Based on the following regression output, what is the equation of the regression line? Regression Statistics Multiple R 0.917214 R Square 0.841282 Adjusted R Square 0.821442 Standard Error 9.385572 Observations 10 ANOVA df SS MS Significance F 1 Regression 3735.3060 3735.30600 42.40379 0.000186 8 Residual 704.7117 88.08896 9 Total 4440.0170 Coefficients Standard Error t Stat P-value Lower 95% Intercept 31.623780 10.442970 3.028236 0.016353 7.542233 X Variable 1.131661 0.173786 6.511819 0.000186 0.730910 o a. 9; = 7.542233+0.7309 Xli o b....
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