When a firm sells shares to the general public for the first time, it is called an first time stock sale o public stock event o initial public offering O seasoned equity offering QUESTION 2 A firm's liquidation value is the amount: o necessary to repurchase all shares of common stock. o realized from selling all assets and paying off its creditors. O a purchaser would pay for the firm in bankruptcy. o equal to the book value of equity. QUESTION 3 If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price? O $4.50 O $18.00 O $22.22 O $40.50