Question: Using the chemical companies data in Table 9.1, predict the price earnings (P/E) ratio from the debt to equity (D/E) ratio, the annual dividends divided
Using the chemical companies’ data in Table 9.1, predict the price earnings (P/E) ratio from the debt to equity (D/E) ratio, the annual dividends divided by the 12-months’ earnings per share (PAYOUTR1), and the percentage net profit margin (NPM1).
Obtain the correlation matrix, and check the correlations between the variables. Summarize the results, including appropriate tests of hypotheses.
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