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6. You have regressed price-sales ratios against fundamentals for NYSE stocks in 1994 and come up with the following regression: PS=0.42+0.33Payout+0.73Growth0.43Beta+7.91Margin For instance, a firm

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6. You have regressed price-sales ratios against fundamentals for NYSE stocks in 1994 and come up with the following regression: PS=0.42+0.33Payout+0.73Growth0.43Beta+7.91Margin For instance, a firm with a 35% payout, a 15% growth rate, a beta of 1.25 , and a profit margin of 10% would have had a price-sales ratio of: PS=0.42+0.330.35+0.730.150.431.25+7.910.10=0.8985 a. What do the coefficients on this regression tell you about the independent variable's relationship with the dependent variable? What statistical concerns might you have with this regression? b. Estimate the price-sales ratios for all the retail chains described in question 2 . Why might this answer be different from the one obtained from the regression of dnly the retail firms? Which one would you consider more reliable and why

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