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5 Exercise 13-10 Net Present Value Analysis [L013-2] Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of
5 Exercise 13-10 Net Present Value Analysis [L013-2] Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received o $420 cosh dividend on the stock at the end of each year for three years At the end of three years, she sold the stock for $16,000, Kathy would like to eam a return of at least 14% on all other investments. She is not sure whether the Malti Company stock provided a 14% return and would like some help with the necessary computations. divndendon 8 esoso Chck hery compation She is nor sure whether the tor sfs doo da s2o 30250 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the oppropriate discount factor(s) using tables 1.66 oints Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock 2 Did the Malti Company stock provide a 14% return? Print Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the net present value that Kathy eamed on her investment in Malti Company stock. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Required 2 >
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