Check my work Exercise 14-10(Algo) Net Present Value Analysis [L014-2] Kathy...
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Exercise Algo Net Present Value Analysis L
Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $ for shares of Malti Company's common stock. She received a cash dividend of $ on the stock at the end of each year for three years. At the end of three years, she sold the stock for $ Kathy would like to earn a return of at least on all of her investments. She is not sure whether the Malti Company stock provides a return and would like some help with the necessary computations.
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using tables.
Required:
Compute the net present value Kathy earned on her investment in Malti Company stock.
Did the Malti Company stock provide a return?
Complete this question by entering your answers in the tabs below.
Compute the net present value Kathy earned on her investment in Malti Company stock.
Note: Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.
Net present value
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