Questions 7 to 10

SCAM: Balance Sheet as of December 31,20XX 1\$ Millions. excent for the number of shares) SCAM: Income Statamant fau Vanar.t.. in 7. (a) What is the firm's quick ratio? (b) How do you interpret the ratio excluding extreme cases? Choose the correct one. A. The higher, the better. B. The lower, the better. 8. (a) What is the firm's price-to-earnings (P/E) ratio? (b) How do you interpret the ratio? Choose the correct one. A. All else equal, potential investors would prefer lower P/E. B. All else equal, potential investors would prefer higher P/E. 9. (a) What is the firm's PEG ratio? (b) How do you interpret the ratio? Choose the correct one. A. All else equal, potential investors would prefer lower PEG ratio. B. All else equal, potential investors would prefer higher PEG ratio. 10. (a) What is the firm's price-to-book value (P/B) ratio? (b) How do you interpret the ratio? Choose the correct one. A. All else equal, potential investors would prefer lower P/B ratio. B. All else equal, potential investors would prefer higher P/B ratio