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

  Determine the cost of ending work in process inventory

Determine the cost of ending work in process inventory and of the units transferred out to the next department.

  What are some ways to generate revenues in convention

What are some ways to generate revenues in convention centers during months where demand is low? and also ways to cut its costs

  Compute the the current ratio after the completion

Assume that Red Missile Company pays the note payable of $163,000, thus reducing cash to $17,000. Compute the The current ratio after the completion

  Amount of total manufacturing cost for the period

The company purchased $10.5 million of materials during the period and used $10 million of this amount. What is the amount of total manufacturing cost

  Should super fresh make the investment in the new business

Assume that Super Fresh has decided to limit its analysis to seven years. Calculate the net present value of the new business using a 14 percent required rate of return. Should Super Fresh make the investment in the new business?

  Actual and budgeted manufacturing overhead rates

1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2. During? March, the? job-cost record for Job 626 contained following? information

  Determine the nonvalue-added cost of each activity

Determine the nonvalue-added cost of each activity. A benchmarking study reveals that the most efficient level for Lemmons would use 54,000 welding hours

  Create and determine the direct materials

Create determine the direct materials and conversion equivalent units of production for November for the Drawing Department. If an amount is zero, enter in "0".

  Concern to entrepreneurs

Why should ethics or social responsibility be of concern to entrepreneurs (how an establishment reacts to the demands of its stakeholders)?

  Find cost of production report for the cutting department

Find cost of production report for the Cutting Department. The Cutting Department of Karachi Carpet Company provides the data

  Is cmyk balanced scorecard useful in helping company

Based on results in the balanced scorecard above, do you think CMYK was successful in implementing its strategy in 2019? Explain.

  Calculate the customer level operating profit

Calculate the customer level operating profit for each of the above merchandising firms based on the actual number of orders written and prepare a customer profitability analysis ranking the firms from most to least profitable showing the level of ..

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