Share dividend on the stock at the end of each year

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Reference no: EM131065662

On January 2, 2009, Ms. Brown paid $18,000 for 900 shares of common stock in AAA Company. Ms. Brown received an $.80 per share dividend on the stock at the end of each year for 4 years. At the end of 4 years she sold the stock for $22,500. Ms. Brown has a goal of earning a minimum return of 12% on all of her investments. Did Ms. Brown earn a 12% return on the stock? Use the present value method to determine the answer.

Reference no: EM131065662

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