Info

Data source: Value Line/Value Screen Data Base, January 1, 1997; Brian Zajac, "Buying American," Forbes, July 28, 1997, 218-220. Reproduced with the permission of Value Line Publishing, Inc.

Data source: Value Line/Value Screen Data Base, January 1, 1997; Brian Zajac, "Buying American," Forbes, July 28, 1997, 218-220. Reproduced with the permission of Value Line Publishing, Inc.

CASE STUDY (continued)

B. A second multiple regression analysis based upon the data contained in Table 11.8 revealed the following (t statistics in parentheses):

Market Value/Assets = -0.016 + 7,145 1/Assets + 0.660 Debt/Assets (-0.01) (0.82) (0.52)

+13.018 ROAf + 6.885 ROAD - 0.040 Growth + 0.150 Foreign/Domestic (4.52) (1.30) (-0.72) (0.94)

Based on the importance of the ROA variables for foreign versus domestic operations, is it reasonable to conclude that foreign markets may be more or less competitive than the U.S. market?

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