Solution-Goal of earning a minimum return

Goal of earning a minimum return

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On January 2, Fred paid $18,000 for 900 shares of common stock of Acme Com panv. Fred received an $0.80 per share dividend on the stock at the end of each year for four years. At the end of four years, he sold the stock for $22,500. Fred has a goal of earning a minimum return of 12% on allot his investments. Using net present value, did Fred earn a 12% return on the stock?

Reference no: EM133216256

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Goal of earning a minimum return

Reference no: EM133216256

Reference no: EM133216256

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