Question: The partial output of a regression model to predict Average P/E Ratio by Earnings per Share, Average Yield, and Dividends Per Share is presented below.

The partial output of a regression model to predict Average P/E Ratio by Earnings per Share, Average Yield, and Dividends Per Share is presented below.

Unstandardized coefficients Standardized Coefficients Beta t

Model B standard error

(constant) 35.444 3.118 11.367

earnings per share -7.655 1.213 -.750 -6.308

yield -2.580 1.057 -.337 -2.440

dividends per share 9.788 3.169 .481 3.088

All Significances are .000

Note that all coefficients are significant at p <.01.

Which of the following is true about rank-ordering predictors of P/E Ratio in the model from the strongest to the weakest predictor:

Dividents per share, yield, earning per share

Earning per share, dividents per share, yield

Yield, earning per share, dividents per share

Impossible to determine from the information given

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