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Question 2. (20 points) For models 3, 3a, and 3b: /> · What is the relationship between book value of equity and time t-1 and the market value of the equity?

Question

2. (20 points) For models 3, 3a, and 3b:

/>·        What is the relationship between book value of equity and time t-1 and the market value of the equity?

 
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