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Linda Clark received $181,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's

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Linda Clark received $181,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf: a. Common stock was purchased at a cost of $80,000. The stock paid no dividends, but it was sold for $140,000 at the end of three years b. Preferred stock was purchased at its par value of $38,000. The stock paid a 9% dividend (based on par value) each year for thiee years. At the end of three years, the stock was sold for $17,000. c. Bonds were purchased at a cost of $63,000. The bonds paid annual interest of $3,000. After three years, the bonds were sold for $65,000 The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 11% return, and he gave Linda the following computations to support his statement: ($60,260+3 years )+$181,000=11.10% Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(5) using tables. Required: 1a. Using a 11\% discount rate, compute the net present value of each of the three investments. 1.b. On which investment(s) did Linda earn a 11% rate of return? 2. Considering all three investments together, did Linda earn a 11% rate of return? 3. Lindo wants to use the $222,000 proceeds ($140,000+$17,000+$65.000=$222.000) from sale of the securities to open a retail store under a 10 -year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 8% return 1-a. Using a 1196 discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 11% rate of return? 2. Considering all three investments together, did Linda earn a 11% rate of return? 3. Linda wants to use the $222,000 proceeds ($140,000+$17,000+$65,000=$222,000) from sale of the securities to open a retai store under a 10 -year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 8% return over the 10 -year period? Complete this question by entering your answers in the tabs below. Using a 11% discount rate, compute the net present value of each of the three investments. (Enter negative amounts with a minus sign. Round computations to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. On which investment(s) did Linda earn a 11% rate of return? (You may select more than one a Considering all three investments together, did Linda earn a 11% rate of return? Linda wants to use the $222,000 proceeds ($140,000+$17,000+$65,000=$222,000) from sale of the securities to open a retail store under a 10 -year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 8% return over the 10 -year period? (Round your answer to the nearest whole dollar)

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