Make a chronological list of the investments cash flows

Assignment Help Accounting Basics

Reference no: EM13396992

On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net-present- value method and desires a 16% return on investments.

a. Prepare a chronological list of the investment's cash flows. Note: Greene is entitled to the 20X3 dividend.

b. Compute the investment's net present value, rounding calculations to the nearest dollar.

c. Given the results of part (b), should Greene have acquired the Heartland stock? Briefly explain.

Reference no: EM13396992

Questions Cloud

When lady gaga released her album ldquoborn this wayrdquo : a shopperrsquos grocery cart contains the following group of products baby powder wet wipes and diapers. what product

Asis company provides the following information and you : asis company provides the following information and you need to make one recommendation to ceo regarding the ar and ap.

What is the difference between contractionary and : what is the difference between contractionary and expansionary monetary policy? what is the intention of each policy

Determine the most important five skills that a forensic : using the wileyplus resources go to the ldquoforensic accountants fraud bustersrdquo example. nbsp1.determine the most

Make a chronological list of the investments cash flows : on january 2 20x1 bruce greene invested 10000 in the stock market and purchased 500 shares of heartland development

Write the uses of money how do commercial banks and federal : what are the uses of money? how do commercial banks and federal banks create money? is monetary policy conducted

Compute the present value of the following cash flows : calculate the present value of the following cash flows rounding to the nearest dollara. a single cash inflow of

Think for a moment about the last product you purchased : think for a moment about the last product you purchased. what was the product?nbsp what is the brand name of the

Compute the amount of the annual rental payment make all : on january 1 2012 palmer company leased equipment to woods corporation. the following information pertains to this

User Account

All Pages