In the following, which statements are true? (There are four correct answers) A. Balance sheet: record the performance of a firm during a time period B. Income statement: record the performance of a firm during a time period C. The value used in the balance sheet is book value D. Net income has two components: retained earnings and interest payment E. The principle of diversification: as the number of stocks under one portfolio increases, portfolio risks increase as well F. The principle of time value of money: one U.S. dollar now is as equally valuable as future G. To compare two firms with different firm sizes, there are two common ways: standardized financial statement and ratio analysis H. In the real world (MM theory case 3), there exists an optimal capital structure, which depends on two offsetting powers: benefit of tax saving and bankruptcy costs B D A G F H E C