4. a) As an analyst, explain why a careful reading of the Notes to Financial Statements will disclose if a company is exaggerating revenues. (b) Explain how a low P/E multiple companies can accelerate its earnings growth and thus become perceived as a high-growth stock.

5. a) How does the use of common form income statements for a peer group allow the analyst to uncover capitalization abuses? (b) What is restructuring, and what is the dangerous trap that users of financial statements must avoid?