1.A firm's current ratio is below the industry average; however, the firm's quick ratio is above the industry average. These ratios suggest that the firm

	A.	has relatively more total current assets and even more inventory than other firms in the industry
	B.	has liquidity that is superior to the average firm in the industry
	C.	has relatively less total current assets and less inventory than other firms in the industry
	D.	is near technical insolvency
	E.	is very efficient at managing inventories

2,The present value of growth opportunities (PVGO) is equal to

I) the difference between a stock's price and its no-growth value per share.

II) the stock's price.

III) zero if its return on equity equals the discount rate.

IV) the net present value of favourable investment opportunities.

	A.	III and IV
	B.	II and IV
	C.	I and IV
	D.	I, III, and IV
	E.	II, III, and IV