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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, three
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 $20,000 for 940 shares of Mailti Company's common stock She received a $752 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 $23,000 Kathy would lke to ean a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provided a 13% return and would like some hep with the necessary computations Click here to view Eshibit 38-1 and Exhibit 139.2, to determine the appropriate discount factons) using tables. Required 1 Compute the net present value that Kathy earned on her investment in Malt Company stock Did the Malti Company stock provide a 13% return? Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the nat present value that Kathy eamed on har investment in Malki Company stock. (agative amcunta should be indicated by a minus sign Round your final anewer to the naarest whole oollar amount.) Reqaired 2
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