Kelly Cronin is one of the statistical experts at CMSSP. He is presently using internally-developed software to explain the relationship between a company’s EPS growth and profitable opportunities as measured by the spread between the equity return on new projects and the firm’s cost of equity. After regressing a sample company’s historical EPS on its return spread for the past ten years, Cronin presented the results to his superior, Brendan Tracy. The following table displays the results of the regression: