Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q1. (5pts) Please download historical monthly stock prices, ROA, Long Term Debt Total Capital Ratio, and Net Income Growth rate for three companies Johnson &
Q1. (5pts) Please download historical monthly stock prices, ROA, Long Term Debt Total Capital Ratio, and Net Income Growth rate for three companies Johnson \& Johnson (JNJ), Target Corporation (TGT) and Verizon Communications Inc (VZ) from here . Estimate the following regression model for each stock and summarize the results in a table using the data given and excel. Please note that the dependent variable is returns, not the prices. - In Excel, you can Data>Data Analysis > Regression to estimate the value of and s Returns =0+1ROA+2 LongTermDebtTotalCapitalRatio +3 NetIncomeGrowth Your table should summarize the following information. 1. Provide interpretation of adjusted R-square. II. Interpret each coefficient, 1,2 and 3. III. How do you interpret the p-value? IV. Based on these three regressions, do you think that ROA, leverage ratio, and net income growth explain the variations in stock returns? Why or why not? Explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started