Answer:
Consider the following explanation
Explanation:
1 First he has,reasonably detailed knowledge of the market in question
2.The second general approach is to use advanced statistical analysis to identify the data
3.Author must collect data not only related to financial aid and college graduates but also on the many variables that can effect these variables .
4.Once the data are collected (which is often much more difficult than it sounds!), the author can then use some advanced statistical techniques to estimate the parameters, including one technique called multiple regression analysis.
If the author has done all these above things on the data ,then i think that his conclusion will be correct.
The best solution to the identification problem is it requires knowledge of the various variables that effect both the financial aid and college graduates so that advanced statistical estimation can be undertaken, In either case, however, knowledge of financial aid and college graduates alone is not sufficient to identify the data and drawing conclusions on the basis of it.
Answer: By creating risk pools, insurance companies help spread the risk and avoid the type of massive payout required after a catastrophic loss. It is a form of risk management for insurance companies. If a claim is made for reimbursement due to that catastrophic loss, the participating insurance companies spread the loss among themselves.
Explanation:
Answer:
B. <u>the weighted average cost of capital is minimized </u>
Explanation:
As per the traditional capital structure theory, as a firm employs more and more debt in it's capital structure, the financial leverage increases and since debt being a cheaper source of finance than equity with interest paid on debt being a tax deductible expense, the overall cost of capital initially falls.
As the firm further keeps increasing the proportion of debt, such debt raises the expectations of equity stockholders which raises the cost of equity and thus the overall cost of capital begins to rise.
An optimal capital structure under the theory refers to the one at which, overall cost of capital or the weighted average cost of capital of the firm is the lowest and value of the firm is the highest.
Answer: Corporate Cultural Responsibility.
Explanation:
The corporate cultural responsibility of a company are the standards members of the society have come to expect from the company based on the previous ways their members of staff have been seen to operate. Corporate Cultural responsibility can be seen in staff dress-code and work style.