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True or false? 1. Return on equity shows the net income earned per dollar of stockholder's equity. 2.The PEG ratio is scaled by growth. Generally,

True or false?

1. Return on equity shows the net income earned per dollar of stockholder's equity.

2.The PEG ratio is scaled by growth. Generally, a PEG ratio of less than two indicates heavy growth potential in an investment.

3. Investors interested in dividend payments should focus on firms with larger payout ratios and/or larger dividends per share.

4.A quick ratio of less than one is considered good or favorable.

5. Nike has a current ratio of 3.90, and Under Armour has a current ratio of 4.50. Based on this information, Nike is more liquid.

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