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koban [17]
2 years ago
10

Use the data set WAGE2.dta to estimate the following model: log (wage) = β0 + β1educ + β2exper + β3tenure + β4married + β5south

+ β6urban + β7black + β8IQ + u (a) Use the variable KWW (the "knowledge of the world of work" test score) as a proxy for ability in place of IQ. What is the estimated return to education in this case? (b) Now, use IQ and KWW together as proxy variables. What happens to the estimated return to education? (c) In part (b), are IQ and KWW individuall significant? Are they jointly significant?

Business
1 answer:
harkovskaia [24]2 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Aleks04 [339]

Answer: This can be explained as follows.

Explanation: A particular ratio can demonstrate the position of a company. For evaluating the position and position of a company the analyst should first compare the company with the industry average. The comparison with industry will imply whether company is in a surviving position or not.

Industry average may not give suitable results therefore comparison with core competitors should also be done.

A company having current ratio of 2.67 shows that such company have a sound financial condition as they have more than double of current ratios for paying their current liabilities .

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2 years ago
The phase of the Technology Product Development Cycle that describes key technology that has been integrated into many products
Serga [27]
I believe the correct answer from the choices listed above is option B. <span>The phase of the Technology Product Development Cycle that describes key technology that has been integrated into many products is the mature phase. Hope this answers the question.</span>
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2 years ago
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A physician saw 24 patients on monday, 16 on tuesday, 25 on wednesday, 8 on thursday, and 22 on friday. what is the average numb
Verizon [17]
19...

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4 0
2 years ago
On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans t
Alenkinab [10]

Answer:Jalen journal $

Date

Jan 1 ,2021

Land Dr. 860,887

Note payable Cr. 860,887

Narration. Issuance of note of above amount payable in four installment for purchase of land.

June 30,2021

Note payable Dr 215,221.64

Cash Cr. 215,221.64

Narration. Payment of first installment on land purchase.

December 31,2021

Note payableDr 215,221.64

Cash.Cr. 215,221.64

Narration. Payment of second installment on land purchase.

2. Balance on note payable as at December 31, 2021 $400,000

Balance on Interest expenses $30,443.28

Explanation:

The land account is debited to recognized it's purchase and a credit is made to the notes payable account to recognise the credit.

The total installment is debited for payment made in the first and second period.

The balance on the note payable represents the two outstanding principal payment of the $800,000 and the interest expenses represents the excess over the principal sum.

6 0
2 years ago
Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the company
solniwko [45]

Answer:

The company's cost of preferred stock for use in calculating the WACC is 9.65%

Explanation:

For computing the cost of preferred stock, the following formula should be used which is shown below

= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)

where,

Flotation cost = 1- rate

                      = 1- 4% = 0.96

= $9.50 ÷ ($102.50 × 0.96)

= $9.50 ÷ $98.4

= 9.65%

The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.

Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%

5 0
2 years ago
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