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In Parts a, c, and d, clearly label the calculation of the required formulas and solve using Excel. Use formulas to calculate the ratios and
In Parts a, c, and d, clearly label the calculation of the required formulas and solve using Excel. Use formulas to calculate the ratios and format the cells to insert a comma if there is more than three numbers. Round dollar amounts to the penny and percentages to two decimal places as percentages. In Parts b and c, justify your answer in a crisp statement not to exceed 50 words each. Mini Case You have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: Capital Cities ABC, Inc. bonds with a par value of $1,000, that pays an 8.75 percent on its par value in interest, sells for $1,314, and matures in 12 years. Southwest Bancorp preferred stock paying a dividend of $2.50 and selling for $25.50. 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 earnings 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 rates of return for these investments are 6 percent for the bond, 7 percent for the preferred stock, and 15 percent for the common stock. Using this information, answer the following questions
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