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A table presents the output from a linear regression model in which the logarithm of the number of analysts following a company is a function
A table presents the output from a linear regression model in which the logarithm of the number of analysts following a company is a function of the firm's debt-to-equity ratio and the logarithm of firm size. One implication of the regression output is that the number of analysts following a company is expected to increase by 0.32% if the firm size increases by 1%. Does this positive relationship make sense to you? Suppose a firm buys out a smaller rival and increases its size by 30%. If 100 analysts followed the company before the buy-out, what is the expected number of analysts following the company after the buy-out? Please explain your responses
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