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Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, six
Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, six years ago she paid $29,000 for 900 shares of Malti Company's common stock. She received a $630 cash dividend on the stock at the end of each year for six years. At the end of six years, she sold the stock for $22,800. Kathy would like to earn a return of at least 15% on all of her investments. She is not sure whether the Malti Company stock provided a 15% return and would like some help with the necessary computations. (Ignore income taxes.) Determine the net present value
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