Afinancial analyst engaged in business valuation obtained financial data on 71 drug companies Let Y correspond to the pllCeJOrbDDK value ratio X' correspond to the return on equity and X2 correspond to the growth percentage Use the accompanying data to complete parts a. through e. below @ Click the Icon to View the business valuation data a. Develop a regression model to predict priceetorbookrvalue ratio based on return on equity 9': 2 3333 + 00703 x'I (Round to tour decimal places as needed) b. Develop a regression model to predict pricerterbookrvalue ratio based on growth 9': 31415 + 0.0307 x2, (Round to tour decimal places as needed) c. Develop a regression model to predict priceetoroookrvalue ratio based on return on equity and growth, 2: 19473 + 00604X1l+ 00216X2' (Round to tour decimal places as needed) d. Compute and interpretthe adjusted r2 for each of the three models Start With the part (a) model The adjusted r2 shows that n/D oltne variation in V is explained by V Y correcting for the nurnoerot independent variables in the model (Round to one decimal place as needed) Price/Book Value Ratio | Return on Equity | Growth% 1.542 12.937 6.408 SUMMARY OUTPUT 1.835 135.685 2002 12.338 0.055 5.602 25.239 14. 186 1.346 8.872 Multiple R 0.6568098 22.714 3.261 18.983 R Square 0.4313931 Adjusted R Square 0.4146756 2.435 25.666 Standard Error 5.235 19.595 11.622 2.075135 2.438 Observations 71 22.812 49.857 7.641 69.681 36.647 ANOVA 0.354 3. 774 41. 121 2.418 9.227 28.909 Regression 222.163861 AXS F 171.08193 25.795901 4.607E-09 0.4314 7.6461 29.254 52.094 Regressi 5.203 Residual 17.835 Residua 25.213 68 Total 68 292.820607 4.3061854 Pad 0.5853 2.058 70 29.244 23.855 1 514.984468 Total 4.688 31353 9.604 18.543 Coefficients Standard Emy 193 Intercept Awake Lower 35X /goer 35power 35. 02per 35.02: 11.952 1.9477658 0.38088967 5.113727 2.772E-06 1.1877123 2.7078 1.1877 2.7078 1943 39.051 14. 181 39.453 Return on Equity 0.0603546 0.0114309 5.2739488 1.463E-06 0.0375446 0.0832 0.0375 0.0832 1.437 Growth% 13.997 27.051 0.0216046 0.00653044 3.3082913 0.001503 0.0085733 0.0346 0.0086 0.0346 1.907 14.912 13.207 5.00 20.642 17.305 14.856 15.991 5.663 16 . 752 SUMMARY OUTPUT 2.899 1.852 11.31 8.414 16. 177 18.233 Multiple R 5.536 0.5829933 23.955 4.695 16.812 14.625 R Square 2589 46.449 1.3398812 Adjusted R Square 0.3303143 0.3399 6.224 1. 732 34.091 Regressi 18.956 8.504 Standard Error 2.2136452 Residual 8.445 38.871 Observations 71 read 0.3303 Total 15.082 15.144 25.245 19.789 ANOVA 7.545 18.372 3.323 3.376 20.643 9.571 Regression 2.85 34. 7291 Residual 175.03356 175.03356 35.526646 9.573E-08 7.015 339.950908 4.9268248 378 Total 15.544 70 514.984468 166 9.551 4.764 23.495 4.071 F-wake Lower 35% goer 35bower 35. 0gger 35. 02 13.307 Intercept 2.3333504 0.38787178 6.0157778 7.654E-08 1.5595674 3.1071 1.5596 3 15.948 Return on Equity 1.581 0.0703081 0.01179582 5.9604233 9.573E-08 0.0467761 0.0938 0.0468 0.0938 5 3.1071 9.366 5. 707 13.502 0.034 5.019 102.807 1.354 1.491 SUMMARY OUTPUT 42.754 5.785 90. 766 73.989 6.568 13.455 9.026 2.604 Multiple R 27.257 34.407 0.4452984 3.375 12.918 12.266 R Square 0. 1982907 6.834 24.575 11.502 Adjusted R Square 0. 1866717 3 71d Standard Error 81.875 2.4461382 24.559 4. 108 Observations 1.508 20. 191 D. 1983 7.266 3.679 Regressi 22.311 ANOVA 6.139 31.602 19. 772 read D. 1867 Residual 1.03 5.004 13. 194 SS Regression 102. 11663 1 F Total .399 47.877 61.261 Residual 102. 11663 17.066109 9.974E-05 1.204 13.339 10.862 Total 69 412.867838 5.9835919 1.006 35.981 9. 167 D 514.984468 3.903 28.783 3.518 18.034 51.816 Thefvents Standard Emy (5131 Awake Lover 35X /goer 35 over 35. 03per 35.0X 2.212 13.963 16.902 Intercept Growth 3. 1415662 0.36132288 8.6946229 1.074E-12 2.4207468 3.8624 2.4207 0.03068 0.00742656 4.1311147 9.974E-05 0.0158644 0. 3.8624 10.009 4.267 33.025 171.375 60.0159 0.0455 21.788 8.486 8.454 11.284 147.786 2.024 17. 169 10.706 4. 149 19.402 6.415 2.318 EZ6 2 8.525 24.477 18.653 4.445 14.295 21.717 5.849 5.05 19.552 2078 31.425 19.328 3.893