1. Considered alone, which of the following would decrease a company's current ratio?

a. an increase in net fixed assets.

b. an increase in accounts payable.

c. an increase in long-term debt.

d. an increase in retained earnings.

2.

Companies E and Q each reported the same earnings per share (EPS), but Company Es stock trades at a higher price. Which of the following statements is CORRECT?

	a.	Company E probably has more growth opportunities.
	b.	Company E is probably judged by investors to be riskier.
	c.	Company E must have a higher market-to-book ratio.
	d.	Company E must pay a lower dividend.
	e.	Company E trades at a lower P/E ratio.

3.

to assess the financial health of the company, a firmae's financial ratios could be compared to:

a. the same firmae's ratio in prior years

b. the ratios of the federal government

c. the ratios of any struggling firms from the same industry

d. the ratios of other firms from different industry

Please provide a solution with an explanation.