Refer to Chapter 13, Problem 6. If you regress the working capital as a percentage of revenue against the beta, the expected growth, and the market value, you obtain the following results: Coefficients Standard Error 0.206509889 0.379097978 -0.059095015 0.150748393 Intercept Beta Expected Growth Market Value -0.676075522 0.430285171 -2.62165E-06 2.88883E-06 = WC(% rev) = 0.379097978 -0.059095015(Beta) -0.676075522 (Expected Growth) - 2.6E-06(Market Value) Based on the estimated regression line, the optimal working capital ratio for Monsanto is 21.20%. This statement is: True False 6. The following table summarizes working capital and revenue for the following firms in the chemical indus- try, as well as information on betas, expected growth, and size. Noncash Expected Working Growth Market Firm Capital Revenues Beta (%) Value Arco Chemical $579 3,423 0.80 13.00 $4,517 Dow Chemical 2,075 20,015 1.25 16.00 19,398 DuPont 3,543 39,333 1.00 17.50 44,946 Georgia Gulf 127 955 1.70 26.50 1,386 Lyondell Petro 264 3,857 1.10 23.50 2,080 Monsanto 2,948 8,272 1.10 11.50 9,296 Olin Corp. 749 2,658 1.00 22.00 1,205 Sterling Chemical 21 701 0.95 43.00 724 Union Carbide 329 4,865 1.30 16.00 4,653