Question 2 3 pts "Each ratio has a specific formula which is used consistently by all analysts." is Incorrect because a single ratio is often computed differently by different individuals. Correct because Generally Accepted Accounting Principles requires that formulas be computed the same way by everyone O Correct because there must be consistency among analysts for ratios to be effective tools. Incorrect because ratios are not used to analyze businesses these days as much as in the past. Correct because the banking industry requires that certain numbers be used for each ratio. Question 3 3 pts In the primary equity market, the corporation Issues the stock certificates. Oversees the transaction to make sure all regulations are met. Advisies the investor on the price he/she should pay for the stock. Pays for the stock. None of the above describes the role of the corporation. > Question 5 3 pts ABC Company has an Internal Growth Rate of 11% and a Sustainable Growth Rate of 12%. This means that ABC Company is holding too much cash on its balance sheet. ABC Company has some debt on the balance sheet. ABC Company is more profitable than most companies in the industry. ABC Company's management is particularly effective. ABC is a publicly traded company