Question: 1. Based on Steve's correlation and data plot, what would you conclude about the relationship between the debt ratio and the price deviation from trend

1. Based on Steve's correlation and data plot, what would you conclude about the relationship between the debt ratio and the price deviation from trend over time? 2. Evaluate Steve's methodology. Be sure to consider the optimal debt ratio model and assumptions. 3. How practical is it for a firm to identify its optimal debt ratio? 4. What should a future business practitioner conclude concerning the concept of an optimal debt ratio?

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