ock at the market rate of return? and d aommon stockholder expected ecled return) The market price for the Earnest mmon stock is $43 per share. The price at the end of 1 year is orat to be $48, and dividends for next to Wht year is nd-of-year dividend of $3, turn) If you purchased 125 shares of common hat pays an k that hased the stock ou Pu rowth rate of 7 percent. s stockholder expected return) Ziercher executives anticipate a growth $3 2 percent for the company's common stock. The stock is currently selling for f snd pays an end-of-year dividend of $1.45. What is your expected what is your expected rate of return for $30 per share? Assume the stock is expected to have a 8-33. (Conm 2 turn if you purchase the stock for its current market price of $42.652 Mini Case fini Case is available in MyFinancelab have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing the money: . A Microsoft bond with a par value of $1,000 that pays 4.2 percent on its par alue 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 recently paid a $1.88 dividend, and the firm's earnings per share has increased from $2.27 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 3 percent for the bond, 5 per- cent for the preferred stock, and 12 percent for the common stock. Using this infor- mation, answer the following questions. a. Calculate the value of each investment based on your required rate of return. b. Which investment would you select? Why? c. Assume Emerson Electric's managers expect earnings to grow at 1 percent above e historical growth rate. How does this assumption affect your answers to parts (a) and (b)? d. What required rates of return would make you indifferent to all three options