# math

You have finally saved 10,000 and are ready to make your first investment. You have the three following alternatives for investing that money:
1) Captial cities ABC Inc. bonds with a par value of \$1000 that pays an 8.75 percent on its par value in interest, sells for \$1.34 and matures in 12 years.
2) Southwest Bancorp preferred stock paying a dividend of \$2.50 and selling for \$25.50.
3) Emerson Electric common stock selling for \$36.75 with a par value of \$5. The stock recently paid a \$1.32 dividend and the firms earning per share has increased from \$1.49 to \$3.06 in the past five years. The firm expects to grow at the same rate for the foreseeable future.
Your required rate of return for these investments are 6 percent for the bond, 7 % for the preferred stock, and 15% for the common stock. Using this information answer the folling question.
Calculate the value of each investment based on your required rate of return

1. 👍 0
2. 👎 0
3. 👁 200

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2. 👎 0
posted by osamah

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