On January 2, 20x1, Rebecca Brown purchased 800 shares of Bazooka 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. Rebecca 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 Rebecca's stock investment. Ignore income taxes.
B. Assume that Rebecca has a 10% hurdle rate for all investments. Rounding to the nearest dollar, compute the net present value of her investment in Bazooka and determine whether she achieved her 10% goal.

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The Answer of On January 2, 20x1, Rebecca Brown purchased 800 shares of Bazooka 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. Rebecca 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 Rebecca's stock investment. Ignore income taxes.
B. Assume that Rebecca has a 10% hurdle rate for all investments. Rounding to the nearest dollar, compute the net present value of her investment in Bazooka and determine whether she achieved her 10% goal.

On January 2, 20x1, Rebecca Brown Purchased 800 Shares of Bazooka