a) Indicate which of the following statements is most correct by placing the number in the marked square 1 2 Stock prices reflect the average price that shares transacted between investors on the day Stock prices reflect the accounting value of equity per share Stock prices reflect the last price that shares transacted between investors Stock prices reflect the price at which an investor could buy or sell shares 3 4 b) Indicate which of the following companies are likely to have share prices increases by placing the number in the marked square Company A Company B Company C Company D Company E Expected Cash Returns 10% 11% 12% 13% 14% Required Return 9% 13% 10% 12% 14% A 1 2 3 A and B B A, C and D E 4 5 c) Indicate which of the following statements is most correct by placing the number in the marked square 1 2 3 The primary role of auditors is to examine client companies for fraud The primary role of auditors is to prepare the financial statements of client companies The primary role of auditors is to provide assurance that the statements are faithfully represented according to accounting standards The primary role of auditors is to examine and validate every transaction by client companies 4