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QUESTION

A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the total assets ($

A finance executive would like to determine if a relationship exists between the current earnings per share​ (EPS) of a bank and the total assets​ ($ billions), previous​ period's EPS, previous​ period's return on average assets​ (ROAA), and the previous​ period's return on average equity​ (ROAE). ROAA measures how effectively assets are​ utilized, and ROAE measures a​ firm's profitability. Complete parts a through d below.

a.) Construct a regression model using all the independent variables. Let y be the current​ EPS, x1 be the total assets​ ($ billions), x2 be the previous​ EPS, x3 be the previous​ ROAA, and x4 be the previous ROAE.

Question: y = ____ + ____x1 +____x2+____x3+____x4

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