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4 years ago

When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.?

Business

2 answers:

Mila [183]4 years ago

6 0

Answer:

False

Explanation:

The reason is that the net difference depends upon the efficiency of the company and doesn't always gives a smaller number of score. There numerous examples like Nestle which integrated its finance departments and other departments which generated greater value for the company in the same year above the budget set. So when the company starts control costs with its greater efficiency achievements the favourable variance starts growing and vice versa.

ArbitrLikvidat [17]4 years ago

4 0

Answer:

False

Explanation:

Pooled variance is technique that is used in statistical analysis to calculate the variance of many different populations because each of the population may have different mean.

However, under pooled variance, it is assumed that each of the population has the variance obtained from the pooling.

Therefore, it is false that the resulting value will be closer to the variance for the sample with the smaller number of scores.

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3 years ago

King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4%. The most recent dividend, Div 0,

vovikov84 [41]

Answer:

a) With a 7% return, the current stock price = $34.67.

b) The current stock price = $17.33, with a 10% return.

c) The current stock price = $14.86, with a 11% return.

d) The current stock price = $9.45, with a 15% return.

e) Current stock price = $7.43 assuming the interest rate is 18%

Explanation:

Requirement A

An investor wants a return of 7%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 7% = 0.07

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.07 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.03

Hence with a 7% return, the current stock price = $34.67.

Requirement B

An investor wants a return of 10%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 10% = 0.10

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.10 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.06

Hence the current stock price = $17.33, with a 10% return.

Requirement C

An investor wants a return of 11%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 11% = 0.11

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.11 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.07

Hence the current stock price = $14.86, with a 11% return.

Requirement D

An investor wants a return of 15%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 15% = 0.15

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.15 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.11

Hence the current stock price = $9.45, with a 15% return.

Requirement E

An investor wants a return of 18%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 18% = 0.18

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.18 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.14

Hence the current stock price = $7.43, with a 18% return.

7 0

4 years ago

Any four works of AHW

lakkis [162]

Answer:

?? what do u mean do u need help with something!

5 0

3 years ago

When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.​?

When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.?