Explain the meaning of the two coefficients

Assignment Help Finance Basics
Reference no: EM133057472

The University MBA program uses the candidates' GMAT scores to predict the candidate's future performance, which is measured by the GPA at the time of graduation. To do this, the program collects GMAT and GPA scores of the MBA students who have already graduated, and run the regression analysis based on the data. The regression model is as follows,

GPA=0.037+0.0055*GMAT.

Q1: Please explain the meaning of the two coefficients: 0.037 and 0.0055.

Reference no: EM133057472

Questions Cloud

Present value of the expected income stream : At a discount rate of 8%, what is this Present Value of the expected income stream? Hint: Solve for each year's PV then sum.
Calculate the beta of a firm that goes up on average : Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 21% when the market goes .
Prepare monthly cash budgets for January and February : Kayak requires a minimum cash balance of $40,000 at each month-end. Prepare monthly cash budgets for January, February, and March
Covered call positions and selling put options : What is the relationship between covered call positions and selling put options? Do the quoted put and call option prices appear to be consistent with this rela
Explain the meaning of the two coefficients : Q1: Please explain the meaning of the two coefficients: 0.037 and 0.0055.
Explain the net payoff on maturity date : On maturity date the price of IBM is $162.8. What is your net payoff on maturity date? Only maturity date payoffs, you do not have to consider the money you rec
Calculate the wacc for xyz inc : Calculate the WACC for XYZ Inc. Express your answer in percent and round to two decimals (do not include the %-symbol in your answer).
Estimate the weighted average cost of capital : In this assignment, you estimate the weighted average cost of capital (WACC) for Microsoft, Campbell Soup and Merck. Assume their before-tax costs of debt are (
What is the present value of the tax shields : Avco is investing $100 million in a new project. To finance this investment the company will issue $100 million of new debt in the form of a 4-year bond.

Reviews

Write a Review

Finance Basics Questions & Answers

  About this sale-and-lease-back contract

You are a hospital administrator trying to raise capital to refurbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on the property on which the hospital complex lies.

  What will be the book value of the jets

Ten years ago, your company purchased a few corporate jets for $2,000,000. For tax purposes they will be fully depreciated over 20 years using the straight-line

  Conducting a five-year financial statement forecast

Conduct a 5-year financial statement forecast of Abbvie. In the short memo, provide an explanation of the basis for your indentification of the most important forecasting parameters and the logic behind the values you assigned to each parameter.

  Find money growth and bond interest rate

Economists have long believed that the more money printed, the higher will be long-term interest rates. Evidence for this view can be found in the table below.

  Should sales resulting from a renewed agreement be included

Should the sales and the associated costs of 180,000 pairs of roller blades to be sold in Thailand under the existing agreement be included in the capital.

  What is the ear of loan-vito corleone

Vito Corleone will loan you money on a 15-for-16 arrangement; i.e., for every $15 he gives you today, you give him $16 one week from now.

  Irr and npv methods in evaluating prjects

Consider a manager using IRR and NPV methods in evaluating prjects. Can these methods ever conflict with each other in the following sense:

  Which of the following is not included the definition

Which of the following is not included the definition of earnings persistence?  A) Stability of the earnings. B) Magnitude of the earnings. C) Predictability of the earnings. D) The earnings’ trend.

  Industry ones the lowest rate of financing costs

Industry ones the lowest rate of financing costs to capitalize the company. Sources of financing as follows: Common stock equity, Preferred stock equity, Bond

  Prepare and explain each planned capital expenditure

Prepare and analyze each planned capital expenditure. Construct and recommend between three and five metrics to measure the performance of the organization. At least one metric should be dividend decision-making driven.

  Does your analysis in part a support this statement

Indicate whether each of the following independent transactions increases, decreases, or has no effect on each of the four debt ratios. The text states that analyst need not compute all four debt ratios each year because the debt ratios are highly co..

  Compute the cash flows for the project

Assume gross margin of 60% (exclusive of depreciation). Use this information (provided above) to compute the cash flows for the project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd