On January 2, 2010, Marissa Foresta purchased 800 shares of Rushdie Publishing's 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, 2011. Marissa sold her entire investment on December 30, 2012, generating a $5,000 gain on the sale of stock.
Required:
A. Prepare a dated listing of the cash inflows and outflows related to Marissa's stock investment. Ignore income taxes.
B. Assume that Marissa has a 10% hurdle rate for all investments. Rounding to the nearest dollar, compute the net present value of her investment in Rushdie and determine whether she achieved her 10% goal.

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The Answer of On January 2, 2010, Marissa Foresta purchased 800 shares of Rushdie Publishing's 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, 2011. Marissa sold her entire investment on December 30, 2012, generating a $5,000 gain on the sale of stock.
Required:
A. Prepare a dated listing of the cash inflows and outflows related to Marissa's stock investment. Ignore income taxes.
B. Assume that Marissa has a 10% hurdle rate for all investments. Rounding to the nearest dollar, compute the net present value of her investment in Rushdie and determine whether she achieved her 10% goal.

On January 2, 2010, Marissa Foresta Purchased 800 Shares of Rushdie