Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Value line estimates of sales and earnings growth for individual companies are derived by correlating sales, earnings, and dividends to suitable components of National Income Accounts capital spending, Jason Black, the analyst for Value Line is examining trend of the capital spending variable from 1977 to 1993. Data are given below in table:

a) Plan data and find out the suitable trend model for the years 1977 to 1993.

b) If the suitable model is linear, find out linear trend model for the years 1977 to 1993.

TABLE CAPITAL SPENDING(BILLIONS),1977-1993

YEAR   BILLION  YEAR  BILLION  YEAR  BILLION
1977   214       1983     357        1989  571
1978   259       1984     416        1990  578
1979   303       1985     443        1991  556
1980   323       1986     437        1992  566
1981   369       1987     443        1993  623
1982   367       1988     545        1994  680(estimate)

c) Determine the average increase in capital spending per year been since 1977?

d) Evaluate the trend value for capital spending in 1994?

e) Evaluate your trend estimate with Value Line’S.

f) prepare down the factor which influence trend of capital spending?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914897

Have any Question? 


Related Questions in Basic Finance

Discuss the major policy tools that the fed can use to

Discuss the major policy tools that the Fed can use to promote the overall health of the economy. What is the most widely used tool?

At the beginning of the year silly slush had retained

At the beginning of the year, Silly Slush had retained earnings of $318,300 and common stock of $250,000. At the end of the year, the firm has retained earnings of $322,500 and common stock of $280,000. Silly Slush has s ...

Decision planning for retirementtom and tricia are 22

Decision: Planning for Retirement Tom and Tricia are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been ...

Impact of fomc statement how might the fomc statement

Impact of FOMC Statement: How might the FOMC statement (following the committee's meeting) stabilize financial markets more than if no statement were provided?

Once we recognize that product differentiation is the basis

"Once we recognize that product differentiation is the basis for much international trade, there are likely to be more winners and fewer losers in a country when the country shifts from no trade to free trade." There may ...

Regarding anovaexplain the difference between the

Regarding ANOVA: Explain the difference between the "Between-Treatments Estimate of Variance and the Within-Treatments Estimate of Variance. Why do we need two estimates? Wouldn't one estimate suffice?

Suppose a natural disaster wipes out a significant portion

Suppose a natural disaster wipes out a significant portion of the economy's capital stock, reducing the potential level of output. What would you expect to happen to the long-run real interest rate? What impact would thi ...

Geotechnical instrumentation is frequently employed for

Geotechnical Instrumentation is frequently employed for monitoring the condition of reclamation. Sometimes two piezometers are installed inside the same borehole. What is the reason behind this?

Critically evaluate the role of derivatives in managing

Critically evaluate the role of derivatives in managing corporate risk. What are the broader implications of using derivatives to hedge risk, particularly in light of the role of derivative instruments in the recent fina ...

Question 1 what are stocks and bonds describe how you could

Question 1: What are Stocks and Bonds? Describe how you could estimate their values. If you are investing in the stock market, which would you invest in and why? Question 2: For your second post, select a stock in which ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate