On january 2 19x1 bruce greene invested 10000 in the stock

Reference no: EM13612439

On January 2, 19X1, 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 19X1 and 19X2; the dividend was raised to $3.10 per share in 19X3. On December 31, 19X3, 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 19X3 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: EM13612439

Questions Cloud

By using the net-present-value method determine whether stl : stl entertainment is considering the acquisition of a sight-seeing boat for summer tours along the mississippi river.

The total electric flux from a cubical box 300cm on a side : the total electric flux from a cubical box 3.00cm on a side is 1.40times103ncdot m2c. what charge is enclosed by the

The city of bedford is studying a 600-acre site on route : the city of bedford is studying a 600-acre site on route 356 for a new landfill. the startup cost has been calculated

Which of the following describes the qualitative behavior : which of the following describes the qualitative behavior of the maxwell-boltzmann distribution as temperature

On january 2 19x1 bruce greene invested 10000 in the stock : on january 2 19x1 bruce greene invested 10000 in the stock market and purchased 500 shares of heartland development

Determine the total exergy destruction associated with the : a brayton cycle with regeneration using air as the working fluid has a pressure ratio of 7. the minimum and maximum

The rear window of a van is coated with a layer of ice at : the rear window of a van is coated with a layer of ice at 0degc. the density of ice is 917 kgm3 and the latent heat of

A golf ball rolls off a horizontal cliff with an initial : a golf ball rolls off a horizontal cliff with an initial speed of 11.4 ms. the ball falls a vertical distance of 15.5 m

The rear window of a van is coated with a layer of ice at : the rear window of a van is coated with a layer of ice at 0degc. the density of ice is 917 kgm3 and the latent heat of

User Account

All Pages