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Exercise 13-10 Net Present Value Analysis [LO13-2] Kathy Myers frequently purchases stocks and bonds, but she Is uncertain how to determine the rate of return
Exercise 13-10 Net Present Value Analysis [LO13-2] 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 $16,000 for 820 shares of Malti Company's common stock. She recelved a $582 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $15,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provided a 10% return and would like some help with the necessary computations. Click here to view Exhibit 13B1 and Exhiblt 13B-2, to determine the appropriate discount factors) using tables 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 10% return? Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the net present value that Kathy earned 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.) Net present value Required 1 Required 2> Exercise 13-10 Net Present Value Analysis [L013-2] Kathy Myers frequently purchases stocks and bonds, but she is uncertaln how to determine the rate of return that she Is earning. For example, three years ago she pald $16,000 for 820 shares of Malti Company's common stock. She recelved a $582 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $15,000. Kathy would lke to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provided a 10% return and would like some help with the necessary computations. Click here to viewEx 13B1 and Exhlbit 13B 2, to determine the appropriste discount factoris) using tables Requirecd 1. Compute the net present value that Kathy earned on her Investment in Malti Company stock. 2. Did the Malti Company stock provide a 10% return? Complete this question by entering your answers in the tabs below. Required 1Required 2 Did the Malti Company stock provide a 10% return? OYes ONo Required 1 Required2
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