A financial analyst engaged in Business Valuation obtained financial data on 72 drug companies. The Excel file "BusinessValuation" file on Moodle contains the following variables

COMPANY - Drug company name

PB fye - Price-to-book-value ratio (fiscal year ending)

ROE - Return on eqity

SGROWTH - Growth

1. Develop a regression model to predict price-to-book-value ratio based on return on equity
2. Develop a regression model to predict price-to-book-value ratio based on growth
3. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth
4. Which of the above three models do you think is the best predictor of price-to-book-value ratio? Why?