BUSN 298 Introduction to Finance Group Project You have finally saved $10,000 and are ready to make your first investment. You have the following three alternatives for investing the money: A Microsoft bond with a par value of $1,000 that pays 4.2% on its par value in interest, sells for $1,115, and matures in 4 years. Southwest Bancorp preferred stock paying a dividend of $2.63 and selling for $26.25. Emerson Electric common stock selling for $60, with a par value of $5. The stock paid a $1.88 dividend at the end of last year, and the firm's earning per share has increased from $2.27 to $3.78 in the past 5 years. The firm expects to grow at the same rate in the foreseeable future. . Your required rates of return for these investments are 3% for the bond, 5% for the preferred stock, and 12% for the common stock. Using this information, answer the following questions. Calculate the value of each investment based on your required rate of return. Which investment would you select? Why? Assume Emerson Electric's managers expecting earnings to grow at 1% above the historical growth rate. How does this assumption affect your answers in parts (a) and (b)? Calculate the expected rates of return and compare to your required rates of return in all of the three alternatives. a) b) c) d) Form a team of three (3) students and perform valuations of bonds, preferred stocks and common stocks. Prepare a one-page Executive Summary with your recommendations and answers to all of the questions. In the Appendix, include calculation. financial analysis and Excel Valuation Model to support your answers if necessary