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You are interested in the determinants of analyst following for publicly traded companies. You conduct a regression on 92 observations, specified as follows: Analystsi =

You are interested in the determinants of analyst following for publicly traded companies. You conduct a regression on 92 observations, specified as follows:

Analystsi = b0 + b1 (D/E)i + b2 Sizei + error

Where Analysts is the natural log of (1 + number of analysts), D/E is the debt to equity ratio of the company, and Size is the natural log of the company's market cap, in millions.

Your regression results are as follows:

Coefficient Standard error
Incercept -0.36 0.05
D/E -0.18 0.19
Size 0.28 0.12

Based on this information, what would be the predicted number of analysts following a company with a debt to equity ratio of 0.24 and a market cap of 104 million dollars?

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