Which of the following items would not affect the investor's income for the period?
a. interest received on a temporary investment in bonds
b. dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock
c. dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock
d. interest received on a long-term investment in bonds
c
You might also like to view...
The cost of goods sold for Frye Manufacturing in the year was $297,000
The January 1 Finished Goods Inventory balance was $31,600, and the December 31 Finished Goods Inventory balance was $25,600. Calculate the cost of goods manufactured during the year. A) $322,600 B) $57,200 C) $291,000 D) $6,000
Which of the following statements is true?
A) Financial theorists have resolved the issue of how to maximize firm value by altering capital structure. B) Firms increase their debt usage when markets overvalue the firm. C) Firms with a high degree of operating leverage usually maintain high debt ratios. D) A firm's long-term earnings are more important than its near-term cash flows in determining the amount of debt to issue. E) A highly leveraged firm has less flexibility to take advantage of investment opportunities than companies with low debt ratios.