answer all questions if possible

4. Wildcat Corporation recently disclosed the following financial information: Earnings/revenue $1,500,000 Assets $7,000,000 Liabilities $1,500,000 Shares outstanding 500,000 Market price $33.00 per share Calculate the price-to-book ratio, the price/earnings ratio, and the book value per share for each of the following separate scenarios: a. Based on current information b. Earnings fall to $1,000,000. c. Liabilities increase to $2,500,000 d. The company does a 3:1 stock split with no change in market capitalization. e. The company repurchases 20 percent of the outstanding stock, incurring additional liability to finance the purchase. 5. An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P/E ratio of 11. Stock Y has a market capi- talization of $62 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P/E of 18. a. Classify these stocks according to their market capitalizations. b. Which of the three would you classify as a growth stock? Why? c. Which stock would be most appropriate for an aggressive investor? d. Which stock would be most appropriate for someone seeking a combination of safety and earnings? 6. Use the following data to answer the questions that follow. Company Beta Savoy Corp. 0.70 Hokie Industries 1.35 Graham Records 2.05 Expo Enterprises 0.45 S&P 500 1.00 a. If the S&P 500 goes up by 15 percent, how much should the stocks of Savoy, Hokie, Graham, and Expo change in value? b. If the stock market drops by 10 percent, which one of these stocks should outperform the others? Why