On January 2, 20x1, Jennifer Grey purchased 800 shares of Sounder Telecommunications common stock at $35 per share. The company paid a $1.50 dividend per share on December 28 of that year, and raised the amount by $0.50 per share for a distribution on December 28, 20x2. Jennifer sold her entire investment on December 30, 20x2, generating a $5,000 gain on the sale of stock.
Required:
A. Prepare a dated listing of the cash inflows and outflows related to Jennifer's stock investment. Ignore income taxes.
B. Assume that Jennifer has a 10% hurdle rate for all investments. Rounding to the nearest dollar, compute the net present value of her investment in Sounder and determine whether she achieved her 10% goal.
Definitions:
Relationship
A connection, association, or interaction between two or more entities, persons, or concepts.
Correlation Coefficients
Statistical measures that describe the type and strength of the relationship between two variables.
Relationship
A link or relationship that exists among two or more people, organizations, or things.
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Footwear made from rubber to provide waterproof protection and support in wet or muddy conditions.
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