Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 1. In this problem we use Regression Analysis to test the hypothesis that Dividends per share significantly affects price per share of a company.

1

image text in transcribed
1. In this problem we use Regression Analysis to test the hypothesis that Dividends per share significantly affects price per share of a company. Coefficients(a) Standardized Model Unstandardized Coefficients Coefficients Sig. B Std. Error Beta Std. Error (Constant) 26.805 3.922 6.835 000 Dividends Per Share 2.408 .328 .811 7.345 .000 Paid a Dependent Variable: Price Per Share of Company Stock Model Summary Adjusted R Std. Error of the Model R R Square Square Estimate 811(a) 658 646 9.683 a Predictors: (Constant), Dividends Per Share Paid a. Using the SPSS results above, state the Regression Equation (Model) for this problem) b. If an asset does not pay dividends, what will be the price of the asset? c. If an asset pays $3.75 per share, what will be the price of the asset? d. State the Null and Alternate Hypothesis that Dividends per Share may or may not affect the Price per Share for a company e. What is the Critical Z value for the test at .01 Level of Significance? f. What is your conclusion? Explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey M. Wooldridge

4th edition

978-0324581621, 324581629, 324660545, 978-0324660548

More Books

Students also viewed these Economics questions