Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015
Exactly 6 months later, the ABC stock is worth $42.00 per share and has not paid a dividend while the DEF stock is worth $36 per share and has paid 2 quarterly dividends of $0.50 each. The holding period returns are
A) ABC, $2.00 and DEF $2.00.
B) ABC 5% and DEF 2.9%.
C) ABC 5% and DEF 5.7%.
D) The holding period return cannot be determined because we do not know the discount rate.
Answer: C
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An unrealized holding gain on a company's available-for-sale debt securities should be reflected in the current financial statements as
(a) an item shown as a direct increase to retained earnings (b) a current gain in the income statement resulting from holding securities (c) a note or parenthetical disclosure only (d) other comprehensive income and included in the equity section of the balance sheet
For every primal
A) that is a maximization problem, the dual is a minimization problem. B) the right-hand side quantities become the dual's objective function coefficients. C) constraint inequality signs are reversed in the dual. D) the transpose of the constraint coefficients become the dual's constraint coefficients. E) All of the above