- X Business Valuation Data Price/Book Value Ratio Return on Equity 1.396 13.006 8.342 11.944 2.092 12.377 6.662 25.134 1.365 8.768 3.269 38.037 2.395 25.636 5.217 19.769 2.376 22.762 7.723 69.785 0.414 3.781 2.455 9.135 7.539 29.102 5.221 17.764 2.076 29.261 4.692 31.507 2.123 14.819 4.053 11.958 1.881 14.295 1.544 14.142 1.927 14.879 5.012 20.634 2.393 14.868 1.987 5.703 2.964 11.122 1.792 16.128 5.623 24.028 4.557 14.689 2.501 6.169 1.674 19.115 8.467 39.038 2.169 15.162 2017 10 818 Growth % 6.375 135.557 0.155 14.258 22.792 19.075 24.703 11.624 49.827 36.698 41.168 28.799 52.128 25.231 23.922 9.601 18.536 39.119 39.501 27.017 13.146 17.335 16.011 16.739 8.365 18.249 16.766 46.542 34.085 8.419 15.031 25.068 0209 Print Done Business Valuation Data TU.234 UJT 1.21 2.948 10.129 2.094 1.508 2.004 7.133 1.258 5.787 6.493 2.609 3.336 6.989 13.733 4.132 7.154 6.063 1.012 9.242 1.298 0.951 3.767 3.673 2.139 10.087 4.358 8.406 1.981 4.159 2.365 2.897 4.448 5.088 2.178 23.601 91.577 1.565 9.405 19.404 5.023 42.732 90.908 19.444 27.233 12.905 24.604 82.055 1.418 3.541 31.478 5.102 47.887 13.469 36.128 28.724 18.085 13.915 133.021 21.805 11.311 17.296 19.375 8.527 18.618 21.602 49.568 19.417 4.108 13.269 15.955 5.834 -0.019 102.632 1.618 74.108 8.961 34.561 12.234 11.644 24.467 20.245 22.187 49.906 13.177 61.135 10.925 9.056 71.082 51.871 17.006 171.373 8.587 247.796 10.723 6.432 24.558 14.209 5.754 31.409 3.958 Print Done - X Business Valuation Data Price/Book Value Ratio Return on Equity 1.396 13.006 8.342 11.944 2.092 12.377 6.662 25.134 1.365 8.768 3.269 38.037 2.395 25.636 5.217 19.769 2.376 22.762 7.723 69.785 0.414 3.781 2.455 9.135 7.539 29.102 5.221 17.764 2.076 29.261 4.692 31.507 2.123 14.819 4.053 11.958 1.881 14.295 1.544 14.142 1.927 14.879 5.012 20.634 2.393 14.868 1.987 5.703 2.964 11.122 1.792 16.128 5.623 24.028 4.557 14.689 2.501 6.169 1.674 19.115 8.467 39.038 2.169 15.162 2017 10 818 Growth % 6.375 135.557 0.155 14.258 22.792 19.075 24.703 11.624 49.827 36.698 41.168 28.799 52.128 25.231 23.922 9.601 18.536 39.119 39.501 27.017 13.146 17.335 16.011 16.739 8.365 18.249 16.766 46.542 34.085 8.419 15.031 25.068 0209 Print Done A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book 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 PLEASE RUN SPSS OR STATCRUNCH TO OBTAIN THE REQUIRED DATA TO ANSWER THE QUESTIONS BELOW! Be prepared to RUN SPSS OR STATCRUNCH in other questions in this module too! .. a. Develop a regression model to predict price-to-book-value ratio based on return on equity. Y; -+xsi (Round to three decimal places as needed.) b. Develop a regression model to predict price-to-book-value ratio based on growth. Y = + x2 (Round to three decimal places as needed.) c. Develop a regression model to predict price-to-book-value ratio based on return on equity and growth. Y = + x1 + x2i (Round to three decimal places as needed.) d. Compute and interpret the adjusted r for each of the three models. Start with the part (a) model. V is explained by correcting for the number of independent variables in the model. V is explained by The adjusted r shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted 2 for the part (b) model. The adjusted shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted r? shows that % of the variation in (Round to one decimal place as needed.) correcting for the number of independent variables in the model. V is explained by correcting for the number of independent variables in the model. d. Compute and interpret the adjusted for each of the three models. Start with the part (a) model. correcting for the number of independent variables in the model. The adjusted shows that % of the variation in V is explained by (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (t price-to-book-value The adjusted r shows that % of the variation in ed by (Round to one decimal place as needed.) return on equity Compute and interpret the adjusted for the part (c) mouer. 12 The adjusted 2 shows that % of the variation in is explained by (Round to one decimal place as needed.) correcting for the number of independent variables in the model. correcting for the number of independent variables in the model. d. Compute and interpret the adjusted for each of the three models. Start with the part (a) model. is explained by V correcting for the number of independent variables in the model. return on equity The adjusted r shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (b) model. 112 The adjusted r shows that % of the variation in 2 (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted shows that % of the variation in (Round to one decimal place as needed.) is explained by correcting for the number of independent variables in the model. price-to-book-value is explained by correcting for the number of independent variables in the model. d. Compute and interpret the adjusted for each of the three models. ? Start with the part (a) model. is explained by I correcting for the number of independent variables in the model. The adjusted 2 shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (b) model before The adjusted shows that % of the variation in (Round to one decimal place as needed.) is explained by I for the number of independent variables in the model. after Compute and interpret the adjusted for the part (c) model. 2 is explained by correcting for the number of independent variables in the model. The adjusted r2 shows that % of the variation in (Round to one decimal place as needed.) d. Compute and interpret the adjusted for each of the three models. Start with the part (a) model. correcting for the number of independent variables in the model. correcting for the number of independent variables in the model. The adjusted shows that % of the variation in is explained by (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (b) model. The adjusted r2 shows that % of the variation in V is explained by (Round to one decimal place as needed.) Compute and interpret the adjusted for the part ( The adjusted r shows that% of the variation in growth explained by (Round to one decimal place as needed.) price-to-book-value correcting for the number of independent variables in the model. d. Compute and interpret the adjusted for each of the three models. Start with the part (a) model. is explained by correcting for the number of independent variables in the model. The adjusted shows that % of the variation in 2 (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (b) model. is explained by correcting for the number of independent variables in the model. The adjusted r2 shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted r shows that % of the variation in (Round to one decimal place as needed.) price-to-book-value is expla correcting for the number of independent variables in the model. growth d. Compute and interpret the adjusted for each of the three models Start with the part (a) model. V is explained by correcting for the number of independent variables in the model. The adjusted r shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (b) model. 12. The adjusted r shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. is explained by correcting for the number of independent variables in the model. after The adjusted 2 shows that% of the variation in (Round to one decimal place as needed.) is explained by V correcting for the number of independent variables in the model. before Abob of these three modelo do this is the best roditorfien tabool vooration d. Compute and interpret the adjusted for each of the three models. Start with the part (a) model. The adjusted r shows that % of the variation in is explained by correcting for the number of independent variables in the model. (Round to one decimal place as needed.) is explained by correcting for the number of independent variables in the model. Compute and interpret the adjusted for the part (b) model. The adjusted shows that % of the variation in (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted shows that % of the variation in (Round to one decimal place as needed.) V is explained by correcting for the number of independent variables in the model. e. Which of these three models do you think is the b D? The model from V is the best predictor of pri price-to-book-value le value of return on equity and growth Compute and interpret the adjusted for the part (c) model. 7 correcting for the number of independent variables in the model. The adjusted r shows that % of the variation in V is explained by (Round to one decimal place as needed.) e. Which of these three models do you think is the best predictor of price-to-book-value ratio? The model from V is the best predictor of price-to-book-value ratio because it has the price-to-book-value return on equity and growth Almuinetrator Compute and interpret the adjusted for the part (c) model. 2 is explained by correcting for the number of independent variables in the model. The adjusted r shows that % of the variation in (Round to one decimal place as needed.) e. Which of these three models do you think is the best predictor of price-to-book-value ratio? The model from is the best predictor of price-to-book-value ratio because it has the value of before after V is explained by correcting for the number of independent variables in the The adjusted (Round to one de the variation in ded.) Compute and int part (c) 7 for the part (c) model. The adjusted (Round to one de part (a) V is explained by the variation in ded.) correcting for the number of independent part (b) e. Which of these ou think is the best predictor of price-to-book-value ratio? The model from V is the best predictor of price-to-book-value ratio because it has the value of smallest correctin (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted r shows that % of the variation in is explained (Round to one decimal place as needed.) e. Which of these three models do you think is the best predictor of price-to-book-value ratio? The model from is the best predictor of price-to-book-value ratio because it has the largest value of number of independe r. The adjusted r2 shows that % of the variation in is explained by (Round to one decimal place as needed.) Compute and interpret the adjusted for the part (c) model. The adjusted r2 shows that % of the variation in is explained by (Round to one decimal place as needed.) e. Which of these three models do you think is the best predictor of price-to-book-value ratio? The model from is the best predictor of price-to-book-value ratio because it has the correcting for the num adjusted ? value of