QUESTION 1 Industry analysis is best described as part of what type of analysis? O a top-down O b. bottom-up O c.value Od growth QUESTION 2 When an industry's growth rates and profit margins slow to rates close to the overall economy, the industry has entered the: a. the pioneering stage Ob rapid and accelerating growth phase O c. mature growth phase Od maturity and stabilization phase QUESTION 3 For the auto industry, studies indicate a strong relationship between: a excess discretionary income and a reluctance to purchase large-ticket items b. vehicle sales and GDP O c. rates of tax and purchasing power O d. buying a house in the year after a car purchase QUESTION 4 If a firm has higher growth prospects than others in the same industry: O a. its P/E ratio will be lower than others Ob one should only examine the trailing P/E c. the forward P/E will be irrelevant d. its P/E ratio will be higher than others QUESTION 5 Financial risk in this case is defined as: a the ability of the firm to consistently earn operating profits. Ob the ability of the firm to both meet payroll and maintain dividend payout ratios. O c. the ability of the firm to cut administrative costs to increase operating profit margin, d. the ability of the firm to meet its debt obligations