Ballantyne Petroleum is a privately held company that is trying to determine an appropriate valuation. Since the company's shares do not trade publicly, the following data for the oil and gas exploration and production sub-industry was collected: Company Wild Cat Gusher Black Gold C.C. Ryder Ewing Barnes Odessa Midland Rio Grand Leduc Slave Lake Foot Hills Edston Clayton Doakes Riddle Bison Sub-Industry Average P/BV 1.22 1.38 1.47 1.50 1.60 1.76 1.82 1.84 1.91 1.91 1.98 2.05 2.19 2.38 2.39 2.65 1.88 ROE 5.0% 3.5% 11.0% 7.5% 12.4% 15.5% 12.0% 11.0% 9.5% 13.0% 13.0% 15.0% 15.0% 15.0% 13.0% 16.0% 11.71 Ballantyne's book value per share is $25 based on 10,000,000 fully shares outstanding and its current ROE is 16 percent. REQUIRED: 1. Estimate the value of Ballantyne using the average P/BV. 2. Develop a cross-regression model for P/BV based on ROE including the R and standard error. 3. Calculate a point estimate and interval estimate (95% confidence) for the value of Echo. 4. How might this estimate be improved? Ballantyne Petroleum is a privately held company that is trying to determine an appropriate valuation. Since the company's shares do not trade publicly, the following data for the oil and gas exploration and production sub-industry was collected: Company Wild Cat Gusher Black Gold C.C. Ryder Ewing Barnes Odessa Midland Rio Grand Leduc Slave Lake Foot Hills Edston Clayton Doakes Riddle Bison Sub-Industry Average P/BV 1.22 1.38 1.47 1.50 1.60 1.76 1.82 1.84 1.91 1.91 1.98 2.05 2.19 2.38 2.39 2.65 1.88 ROE 5.0% 3.5% 11.0% 7.5% 12.4% 15.5% 12.0% 11.0% 9.5% 13.0% 13.0% 15.0% 15.0% 15.0% 13.0% 16.0% 11.71 Ballantyne's book value per share is $25 based on 10,000,000 fully shares outstanding and its current ROE is 16 percent. REQUIRED: 1. Estimate the value of Ballantyne using the average P/BV. 2. Develop a cross-regression model for P/BV based on ROE including the R and standard error. 3. Calculate a point estimate and interval estimate (95% confidence) for the value of Echo. 4. How might this estimate be improved