On january 2 richie valens pauid 24000 for 980 shares of, Ask an Expert

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On January 2, RIchie Valens pauid $24000 for 980 shares of the common stock of Acme Company. Mr. Valens recieved an $0.84 per share dicidend on the stock at the end of each year for five years. At the end of five years, he sold the stock for $22,000 Mr Valens has a goal of earning a minimum return of 10% on all of his investments

a) Determine the net present value Negative amount should be indicated by a minus sign. Round discount factors to 3 decimal places, intermediate and final answers to the nearest dollar amount.What is the net present value?
b) Did mr Valens earn a 10% return on the stock?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9955107

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