Please Answer 3 Sub Parts the question and no Reject.... Thank u 1. In July 2010, financial analysts regressed the price to book ratiosagainst the fundamentals identified in the preceding section-the returnto equity, the payout ratio, the beta, and the expected earnings growth rateover the next five years (from analyst forecasts).PBV = 1.09 + 8.93 ROE + .809 Payout ratio + .917 Beta + 7.55 expectedgrowth rateThe regression has an R-squared of 43.2 %Assume that you had been asked to value a private firm early in 2011 andthat you had the following data on company:Book value of equity100 millionNet income in 201020 million8 millionDividend paidBeta based on comparable firms 1.25Assume also that the firm reinvested $ 12 million in 2010and earnings areexpected to grow 25% a year to the next five years.a) Calculate the independent variables in the desired unit.b) Compute the predicted price-book ratios and market value of firm.c) Interpret the R- squared of this regression.

Name: Please Answer 3 Sub Parts the question and no Reject.... Thank u 1. In
Uploaded: 2024-03-20T07:07:37.000Z
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Description: Please Answer 3 Sub Parts the question and no Reject.... Thank u 1. In July 2010, financial analysts regressed the price to book ratiosagainst the fundamentals identified in the preceding section-the returnto equity, the payout ratio, the beta, and t