In which of the following situations might the Price/EBITDA ratio be more useful than the P/E ratio? 0 when valuing small companies with little or no debt O when comparing companies from different countries due to the different accounting rules that may apply o when valuing firms in an industry that is known to require a lot of upfront capital expenditures There is no difference o Firm A and Firm B have a operating profit margin of 28%. Firm A has a net profit margin of 14%, while Firm B has a net profit margin of 18%. Which of the following is the probable reason for this? o Firm A has more interest expense than Firm B. o Firm A has more depreciation and amortization expense than Firm B. o Firm A has a higher cost of goods sold than Firm B. O All of the above are possible reasons for the stated results. Sussex Construction Company has operating income (EBIT) of $2,250,000. The company's depreciation expenses is $450,000, its interest expense is $120,000, and it has a 40% tax rate. What is the company's net income? O $1,008,000 O $1,278,000 0 $1,475,000 O $1,728,000 Which of the following basic categories (or way) are NOT used for ratio analysis O Ratio analysis involves dividing various financial statement numbers into one another O Ratios can be used in trend analysis, in which values of a ratio are examined over time, cross- sectional analysis, in which different firms are compared to each other O Ratio analysis is used to compare a firm's ratios to industry averages. Ratios can be used for cross-sectional analysis, in which different firms are compared to each other