If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion? A: The stock has a low level of risk. B: The stock offers a high dividend payout ratio. C: The market is undervaluing the stock. D: The market is overvaluing the stock.

Earnings per share (EPS) represents current earnings while price to earnings ratio represents future earnings.

is used for long-term solvency. A: Current ratio B: Time-interest-earned ratio C: Inventory period D: Book value per share

Directions: After reading the following list, you are required to find the items equivalent to (与…等同) those given in Chinese in the table below. Then you should put the corresponding letters in the brackets on the Answer Sheet, numbered 1 through 5. A—Bull market J—Earnings per share B—Bull market K—Price per share C—Closing price L—Market value D—Opening price M—Volume of trading E—Primary market N—Ordinary share F—Secondary market O—Composite Index G—Individual investor P—Account balance H—Annual report Q—Annual return I—Cash flow Examples:(D)综合指数 (L)一级市场 1.( )每股股价 ( )年回报 2.( )开盘价 ( )熊市 3.( )二级市场 ( )交易量 4.( )资金流 ( )普通股 5.( )每股收益 ( )市场价值

A company issued 20,000 shares of its $1 par value ordinary stock for cash. The price is $10 per share. The entry to record this transaction would be: A: Debit Cash $200,000; credit Ordinary Stock $20,000; credit Share Premium, Ordinary Stock $180,000. B: Debit Cash for $200,000; credit Ordinary Stock $200,000 C: Debit Ordinary Stock $20,000; debit Share Premium, Ordinary Stock $180,000; credit Cash $200,000. D: Debit Ordinary Stock $20,000; credit Cash $20,000.