Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 16 Feb 2018 My Price 5.00

Fred Critchfield

EXERCISE 13–15 Basic Net Present Value Analysis [LO1]

On January 2, Fred Critchfield paid $18,000 for 900 shares of the common stock of Acme Com- pany. Mr. Critchfield 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. Mr. Critchfield has a goal of earning a minimum return of 12% on all of his investments.

Required:

(Ignore income taxes.) Did Mr. Critchfield earn a 12% return on the stock? Use the net present value method and the general format shown in Exhibit 13–4. Round all computations to the nearest whole dollar.

 

Answers

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Status NEW Posted 16 Feb 2018 05:02 PM My Price 5.00

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