a) What is liquidity a measure of? Discuss the potential merits of high liquidity verses low liquidity. b) You are reviewing the books of a firm you are considering purchasing and notice a considerable difference between the market value of some assets and the book value. Why might there be a difference? c) If you consider purchasing a firm what is the firm's enterprise value based on? (Hint: consider this in terms of the balance sheet entities). Comment on the difference between 'enterprise value' and 'market value'. d) What is the purpose of a firm? Express your response in terms of owner's perspective. e) A firm is engaging in a large capital project. It requires 100 million dollars for this project. What options does the firm have to raise funds to finance this large capital project. Answer Place only your final answer in the box