5) What is the main difference between Operating Income and EBIT? (2 pts) a) No difference, EBIT and Operating Income are the same b) Non-Operating Activities are not included in Operating Income, but they are included in EBIT c) Non-Operating Activities are not included in EBIT, but they are included in Operating Income d) Operating Income is before interest and tax expenses, but EBIT is after interest and tax expenses 6) Case Corp has a quick ratio of 25. Which of the following statements would you agree with? (2 pts) a) Very good ratio, the company is operating very efficiently b) Good ratio, but with some liquidity concerns c) This high ratio could indicate inefficient use of resources d) Ratio is too high, meaning that liquidity is a big concern 7) Western Tech is struggling to manage its working capital (WC). They want decrease WC and are looking for suggestions. What actions would you recommend? Select all that apply. (3 Pts) a) Pay your suppliers cash on delivery b) Require customers to pay cash on delivery c) Grant your customers 30 days credit d) Negotiate 30 days credit from your suppliers e) Keep high inventory levels at all times f) Hold just in time" inventory levels 8) During class we discussed the components of relative valuation (numerator and denominator). One important consideration is to make sure that you're consistently defining the multiple that you're using. Which of the following is not consistently defined? Select all that apply. (3 pts) a) Price/EBITDA b) Price/Net Income (aka Earnings) c) EV/Net Income (aka Earnings) d) Price/UFCF e) Price/Sales per share