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2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?

2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?
Transcribed Image Text:2. The following information are derived from Dow Jones Stock Exchange. These are the companies that make up Dow Jones Utility Index. (40 points) Symbol AES AEP CNP FD D DUK EIX EXC FE FPL NI PCG PEG SO WMB Company AES Corporation American Electric Power CenterPoint Energy, Inc. Consolidated Edison, Inc. Dominion Resources, Inc. Duke Energy Corporation Edison International Exelon Corporation FirstEnergy FPL Group Corporation NiSource PG&E Public Service Enterprise Group Southern Company, Inc. Williams Companies, Inc. Assets ($ billions) 34.806 45.155 19.676 33.498 42.053 53.077 44.615 47.817 33.521 44.821 20.032 40.860 29.049 48.347 26.006 Sales ($ billions) 16.070 14.440 10.725 13.479 16.290 13.207 14.112 19.065 13.627 16.680 8.309 14.628 13.322 17.110 11.256 Profits ($ billions) 1.234 1.380 0.391 1.077 1.834 2.195 1.215 2.867 1.342 1.754 -0.502 1.338 1.192 1.492 0.694 a. How are profits related to sales and profits? Explain by drawing graphs. b. Describe your variables for multiple regression analysis and develop your regression equation with QM. c. Is this regression equation a good or bad one why? d. If next year any of the company has 50.000 billion dollars as an asset and their sales is about 10.000 billion dollars, can you estimate the profits of the company?
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