9 months ago, you bought a common stock for $98, expecting the stock to increase in value to $108. The stock recently paid a special dividend of $5, and you decided to sell. Mary sold the stock for $96.92. What is her holding period return?

• -1.1%
• 13.3%
• 8.5%
• 4%
• None of the above

Which of the following statements about capital budgeting decision methods is most correct?

• NPV is superior since it is the most conceptually correct method.
• IRR is superior since it measures the rate of return on a capital investment.
• PI is superior since it measures the present value benefit per dollar of capital invested.
• PB is superior since it is quick and easy to use and understand.
• None of the three methods is considered superior to the others.