Which is the answer?

All coefficients in the following regressions are statistically significant. Which one of these regressionsrepresents a sensible choice in adjusting the respective multiples?

1.None of the regressions should be used to adjust the respective multiples.

2.PB=2-(4*ROE)

3.PE=16+(3 *beta)

4.EV/Capital=1+(6*WACC)-(5*Growth)

5.All of the regressions can be used to adjust the respective multiples.

6.PS=3+(5*beta)

A low value for the forward EV/EBIT ratio can be caused by:

1.a low weighted average cost of capital.

2.a low growth rate.

3.a low cost of debt.

4.a low tax rate.

5.a low cost of equity.