A multiple regression equation includes five independent variables, and the coefficient of determination is 0.81. The percentage of the variation in 
that is explained by the regression equation is 90%.
Definitions:
Flotation Costs
The expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.
Cost of Equity
The theoretical compensation a company pays to its equity investors for the risk involved in investing in the firm.
Beta
A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.
Stock Price
The cost of purchasing a share of a company's stock on the stock market.
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