True or false?

1. A firm's PE ratio measures how much shareholders must pay for $1 of earnings.

2. A firm's earnings per share shows a firm's earnings potential over a specific quarter.

3. A higher price to earnings ratio is not always preferable. PE should always be supplemented with a firm's PEG ratio.

4. Nordstorm has a current ratio of 1.78 and a quick ratio of 0,69, Based on this information, it appears Nordstorm may have an inventory issue.

5.A higher total asset turnover ratio indicates that a firm is less efficient with utilizing its assets to generate sales.