Consider company #1 where the debt-to-capital ratio = 14.8 and the return on cap

Question

Consider company #1 where the debt-to-capital ratio = 14.8 and the return on capital = 32.6. The residual of this observation is (Give your answer to 1 decimal place.)

A point estimate for the return on capital when the debt-to-capital ratio is 30% is (Give your answer to 1 decimal place.)

The standard error of prediction associated with a 95% prediction interval for the return on capital when the debt-to-capital ratio is 30% is approximately

Paste Format Painter Font Clipboard aACompany Index A1 Debt to Return on Company capital Capital Index / ) (%) 114.8 Ratio (96 32.6 5.1 2 41.5 41.922.1 4 7.625.4 15.6 6 19.0 31.8 39.2 19.6 25.9 33.6 20.5 18.635.4 10 9 10 1.8 9.0 35.9 30.8 13.1 17.9 1.8 9.7 12 13 14 15 16 17 18 19 20 21 12 1344.s 14 15 16 17 18 19 20 46.9 16.819.8 5.3 48.0 33.8 0.7 1.0 33.8 11.3 15.4 27.4 23 21 24 22 2523 32.5264 48.9 26.6 18.5 34.1 24 14.228.9 26 27 28 49.9 30 31 32

Explanation / Answer

Index Debt to Capital Ratio % Return on Capital % Forecast 1 14.80 32.6 28.3415 2 41.50 5.1 n 24 3 41.90 22.1 df 22 n-2 4 7.60 25.4 mean(x) 23.17 5 15.60 31.8 xo 30 1) Residual 4.3 6 19.00 39.2 y0 21.91 2) Point estimate for debt to capital of 30% 21.9 7 33.60 19.6 Sy-x 10.9796 3) Lower value 16.8 8 20.50 25.9 SSx 5443.01 Upper value 27.0 9 18.60 35.4 se 2.46088 10 1.80 30.8 t-crit 2.07387 11 9.00 13.1 Lower 16.8072 12 35.90 17.9 Higher 27.0143 13 44.50 -1.8 14 46.90 9.7 15 16.80 19.8 16 5.30 33.8 17 48.00 11.3 18 33.80 15.4 19 0.70 27.4 20 1.00 26.4 21 32.50 48.9 22 18.50 26.6 23 34.10 28.9 24 14.20 49.9

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.