In 2007,the Securities and Exchange Commission (SEC)began to Allow Foreign

question 4

Multiple Choice

In 2007,the Securities and Exchange Commission (SEC) began to allow foreign companies to use which of the following for its reporting standards?

• A)SOX
• B)GAAP
• C)GAAS
• D)IFRS

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Definitions:

P/E Ratio

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings.

ROE

Return on Equity, a financial ratio that measures the profitability of a corporation in relation to stockholders' equity.

EPS

Earnings Per Share, a financial metric that divides a company's profit by the number of its shares outstanding.

Market Capitalization Rate

The expected return on an investment in a market portfolio, based on the market price of risk.