Did laarner earn a return on the shares

Assignment Help Managerial Accounting
Reference no: EM132517401

Sean Laarner paid $18,000 for 900 common shares of Acme Company on January 2, four years ago. Laarner received an $0.80 per share dividend on the shares at the end of each year for four years. At the end of four years, he sold the shares for $22,500. Laarner's goal is to earn a minimum return of 12% on all of his investments. (Ignore income taxes.)

Required:

Question 1. Compute the net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign.)

Question 2. Did Laarner earn a 12% return on the shares?

  • No
  • Yes

Reference no: EM132517401

Questions Cloud

You think some people resist the idea of working in teams : Why do you think some people resist the idea of working in teams ( in IT industry) and how would you deal with their resistance?
Prepare the journal entries to record sold the bonds : Prepare the journal entries to record the January 1, 2016 Sold the bonds at an effective rate of 8% and December 31, 2016 First interest payment
Setting information to online pharmacies : You have been assigned to investigate whether or not employee at local hospital has been accessing patient records and setting information to online pharmacies
Compute both basic and diluted earnings per share : The current conversion ratio is 14:1, and in 2 years it will increase to 17:1. Compute both basic and diluted earnings per share
Did laarner earn a return on the shares : Compute the net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations)
Hangman game : Hangman game. User will be able to select the category to play with .At least 5 categories in each should be presented in the game
Prepare the journal entry to record revenue : On December 31, 2018, ABC Company sells equipment to Z Inc. for €125,000. Prepare the journal entry to record revenue on this transaction
Determine mountain air should continue to make : Determine whether Mountain Air should continue to make the electric motor or outsource it from Mini Motor Company. Calculate the net advantage
Prepare the necessary journal entry for the ABC Store : Assume that a customer purchases a washing machine with both installation and maintenance services for €1,450. Prepare necessary journal entry for ABC Store

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd