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A multiple regression model has the form . The coefficient b1 is interpreted as the average change in y per unit change in x1.
Return on Total Assets
A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using its assets to generate earnings.
Interest Expense
A financial charge for borrowing money or the cost incurred on debt.
Net Income
The total profit of a company after all expenses and taxes have been subtracted from total revenue.
Financial Leverage
A difference between the rate of return on assets and the rate paid to creditors.
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