b) The variables that correlate with a firm's leverage have been studied by manyresearchers over the years. While the set of statistically significant variablesmay vary from study to study, the following is a list of the common determinantsof capital structure:- Firm size;- Asset tangibility;- Profitability;- Market-to-book (MTB) ratio;- Industry capital structure.For each of these variables, describe the sign (positive or negative) of therelationship that is typically observed with leverage. Also, explain whether sucha relationship is expected based on the trade-off theory, the pecking ordertheory or other theories of capital structure.

Answered: Image /qna-images/answer/19964c64-9071-4a61-8dec-dabee9440e0f.jpg

Answered: b) The variables that correlate with a…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Company ABC has the following information. Please calculate the Z-core for 2021 and 2022 and provide a comment on its performance. Variables 2022 2021 X1(net working capital /total asset) 0.56 0.175 X2(retained earnings/total asset) -0.12 0.08 X3(EBIT/total assets) 0.56 0.69 X4(market value of equity/book value of total liability) 1.2 0.96 X5(sales/total asset) 0.78 0.63 Z-score (1.2X1+1.4X2+3.3X3+0.6X4+1X5) 3.852 3.805
A ________ is structured collection of related data and files. Question 25 options: deterministic model database decision support system data validation decision model
Why is strategic competency important?
Suppose the number of seconds required to accelerate to 60 mph depends on both a car’s weight, its horsepower, and an interaction term between the two variables. Describe why an interaction term could be appropriate for the variables in this model and construct three linear relationships between acceleration time and weight, each for a different assumed value of horsepower.
Individuals involved in the criminal justice system are thought to display many dynamic criminogenic needs, meaning that they have areas of need that are specifically associated with a higher risk of offending (e.g., substance use, antisocial peers etc…). Research has demonstrated that addressing these needs in treatment can lead to reductions in committing new crimes when released from prison. A researcher thinks that offenders may also have some strengths that, if built upon, can also lead to further reductions in recidivism. The researcher has 10 incarcerated offenders take 2 assessments: one on dynamic risk factors and one on strengths (both interval scales) to see if these measures are related to each other. Using the data in Table 1 and testing at an alpha of 0.05, use all the steps of hypothesis testing to determine what can be said about the researcher’s hypothesis. Dynamic Strength 10 2 12 3 8 5 5 4 6 3 7 6 9 5 10 4 11 2 9 1
the general election (Rasmussen Reports website, November 4, 2012). The state of theeconomy was thought to be an important determinant of how people would vote. Amongother things, the survey found that 165 of the respondents rated the economy as good orexcellent and 315 rated the economy as poor.a. Develop a point estimate of the proportion of likely voters in Ohio who rated theeconomy as good or excellent
A survey of 750 likely voters in Ohio was conducted by the Rasmussen Poll just prior tothe general election (Rasmussen Reports website, November 4, 2012). The state of theeconomy was thought to be an important determinant of how people would vote. Amongother things, the survey found that 165 of the respondents rated the economy as good orexcellent and 315 rated the economy as poor.a. Develop a point estimate of the proportion of likely voters in Ohio who rated theeconomy as good or excellent.b. Construct a 95% confidence interval for the proportion of likely voters in Ohio whorated the economy as good or excellent.c. Construct a 95% confidence interval for the proportion of likely voters in Ohio whorated the economy as poor.
A survey of 750 likely voters in Ohio was conducted by the Rasmussen Poll just prior tothe general election (Rasmussen Reports website, November 4, 2012). The state of theeconomy was thought to be an important determinant of how people would vote. Amongother things, the survey found that 165 of the respondents rated the economy as good orexcellent and 315 rated the economy as poor.a. Develop a point estimate of the proportion of likely voters in Ohio who rated theeconomy as good or excellent.b. Construct a 95% confidence interval for the proportion of likely voters in Ohio whorated the economy as good or excellent
A survey of 750 likely voters in Ohio was conducted by the Rasmussen Poll just prior tothe general election (Rasmussen Reports website, November 4, 2012). The state of theeconomy was thought to be an important determinant of how people would vote. Amongother things, the survey found that 165 of the respondents rated the economy as good orexcellent and 315 rated the economy as poor.a. Develop a point estimate of the proportion of likely voters in Ohio who rated theeconomy as good or excellent.b. Construct a 95% confidence interval for the proportion of likely voters in Ohio whorated the economy as good or excellent.c. Construct a 95% confidence interval for the proportion of likely voters in Ohio whorated the economy as poor.d. Which of the confidence intervals in parts (b) and (c) is wider? Why?
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Economists, Angrist and Lavy (1999) exploited an 800 year-old rule regarding classroom size to estimate the causal effect of smaller classes on student achievement. The rule, made famous by 12th century scholar Maimonides, states that one teacher is sufficient to manage a class with up to 40 students. Classes with more than 40 students will require 2 teachers. Angrist and Lavy noticed that strict application of this rule in certain areas meant that if 80 students were enrolled in a school, then the school would divide them up into two groups of 40 students per teacher. If 81 students were enrolled, however, they would be placed in three classes of 27 students each. The rule thus generated sharp discontinuities in class sizes within schools, which, the authors argue, allow them to provide causal evidence of a boost in fifth grade math and reading scores as a result of smaller class size. a. What research design is implied by the authors’ use of Maimonides’ rule to estimate the causal…

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