Travis bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65. What was his dollar profit or loss and holding period return?

-$3.00, -9.52%

-$3.85, -12.22%

-$.85, -2.70%

-$3.85, -9.52%

If you were required to estimate the average return for one category of securities for the coming year, history tells us that you should have the greatest degree of confidence estimating which of the following?

Long-term government bonds

3-month U.S. Treasury bills

Small-company stocks

Large-company stocks

Which of the following are not considered a part of the firm's capital structure?

Long-term debt

Retained earnings

Inventory

Preferred stock

Which of the following would NOT be considered a cost of debt financing?

The required return on a bank loan

The required return on preferred stock

The yield-to-maturity of a bond issue

The required return on money borrowed from a venture capitalist