Compute the net present value kathy earned

Reference no: EM133731481

Case 1. 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 $23,000 for 500 shares of Malti Company's common stock. She received a cash dividend of $460 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $30,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provides a 13% return and would like some help with the necessary computations.

Required:

Compute the net present value Kathy earned on her investment in Malti Company stock.

Did the Malti Company stock provide a 13% return?

Reference no: EM133731481

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