Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kathy myers frequently purchases stocks and bonds,

Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the...

90.2K

Verified Solution

Question

Accounting

image
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 $24,500 for 1,020 shares of Malt Company's common stock. She received a $898 cash dividend on the stook at the end of each year for three years. At the end of three years, she sold the stock for $20,000. Kathy would like to earn a return of at least 8% on all of her investments. She is not sure whether the Malti Company stock provided a 8% return and would like some help with the necessary computations. (Ignore income taxes.) Click here to view Exhibit 118-1 and Exhibit 11B-2, to determine the appropriate discount factorfs) using tables. Required: a. Determine the net present value. (Round your answer to the nearest whole dollar.) Net present value 30 b Did Kathy Myers earn 8% retum on her investment

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What are the core functions of an EHR System? What are the differences between an EHR and...

Psychology
Q

What is a population parameter A population parameter is a numerical Give three examples Select...

Basic Math
Q

An isosceles triangle has a vertex angle of 26. Two sides of the triangle are...

Basic Math
Q

Dallas Texas and Stafford Texas are numbered 57 and 58 on the top 100 most...

Statistics
Q

10 points Lottery Every day Jorge buys a lottery ticket Each ticket has a probability...

Statistics
Q

Evaluate the ?(2+x)/?x dx [1,8] integralA particle moves along a line so that...

Calculus
Q

Let f x 5x 2x 4 and g x 4x 5 After simplifying g x

Algebra
Q

1 1 The formula 1 x 22 models the percentage of households with an interfaith...

Algebra
Q

Appendix 2 EX 4-30 Adjusting and reversing entries On the basis of the following data,...

Accounting
Q

Use the following information to compute the cost of goods sold for the period

Accounting
Q

A machine costing 600,000, with an expected useful life of 10 years, and an estimated...

Accounting
Q

Net Cash Frowded by Operating Activitles Cesh Flows fromimesing Activites 25880 Net Cish used by...

Accounting