o You have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing that money . A Microsoft bond with a par value of $1,000 that pays 9.50 percent on its par value in interest, sells for $1,115,65, and matures in 14 years. Southwest Bancorp preferred stock paying a dividend of $2.61 and selling for $25.76. Emerson Electric common stock selling for $64.25, with a par value of $5. The stock recently paid a $1.75 dividend, and the firm's earnings per share has increased from $2.37 to $3.78 in the past 5 years. The firm expects to grow at the same rate for the foreseeable future. Your required rates of return for these investments are 7.50 percent for the bond, 9.00 percent for the preferred stock, and 11.50 percent for the common stock. Using this information, answer the following questions. a. Calculate the value of each investment based on your required rate of retur. b. Which investment would you select? Why? c. Assume Emerson Electric's managers expect an earnings to grow at 3 percent above the historical growth rate. How does this affect your answers to parts a and b? d. What required rates of return would make you indifferent to all three options? a. If your required rate of return on the bonds la 7.50%, what is the value of Microsoft bond? (Round to the nearest cont.) If your required rate of return on the preferred stock is 9.00%, what is the value of Southwest Bancorp proferred stock? (Round to the nearest cent) Emerson Electric's earnings per share has increased from $2.37 to $3.78 in the past five years. What is the thual compounding growth rato? % (Round to two decimal places) If your required rate of return on the common stock is 11.50%, what is the value of Emerson Electric common stock? (Round to the nearest cont.) Enter your answer in each of the answer boxes. Save for Later