1.EBITDA can be correctly computed as Net income (from continuing operations) plus interest expense plus taxes plus depreciation & amortization. True or False

2.The use of normalized earnings is used to address the problem of cyclicality by estimating the level of earnings per share that the company could achieve currently under mid-cyclical conditions.True or False

3.One advantage of P/E over P/S is that accounting decisions typically have a much greater impact on a company's reported earnings than on reported sales. True or False

4.It would not be appropriate for an analyst faced with negative EPS for a company to use normalized EPS in its place.True or False

5.A company with negative trailing EPS could be valued appropriately with a trailing P/E ratio from comparable peer-group stocks.True or False