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3. A finance executive would like to determine if a relationship exists between the price/earnings ratio (%) and earnings per share (%), return on equity

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3. A finance executive would like to determine if a relationship exists between the price/earnings ratio (\%) and earnings per share (\%), return on equity (\%), earnings growth (%), and good or bad management ( 1 is good, and o otherwise). He asked a financial analyst to collect zo years of data on the variables in order to perform a multiple regression analysis. The analyst produced the results of the regression analysis below. SUMMARY OUTPUT \begin{tabular}{|lr|} \hline \multicolumn{2}{|c|}{ Regression Statistics } \\ \hline Multiple R & 0.90234735 \\ R Square & 0.81423074 \\ Adjusted R Square & 0.76469227 \\ Standard Error & 5.59294031 \\ Observations & 20 \\ \hline \end{tabular} ANOVA Based on the figure, answer the following questions: A. Formulate the regression equation. B. Interpret L (EPS) C. Estimate the P/E ratio if earnings growth is .90, and management is not good. D. At a 5% level of significance, is any of the independent variables not significant? E. State the null and alternative hypotheses, and say whether you would reject the null hypothesis. F. Is the overall model significant? Explain. G. What proportion of the variability in price/earnings ratios is accounted for in the model

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