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please find npv of preferred stock and npv of bonds !! tables can be looked up if blurry 5 Linda Clark received $221,000 from her

please find npv of preferred stock and npv of bonds !! tables can be looked up if blurry image text in transcribed
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5 Linda Clark received $221,000 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 $98,000. The stock paid no dividends, but it was sold for $160,000 at the end of three years. b. Preferred stock was purchased at its par value of $53,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $39,000 c. Bonds were purchased at a cost of $70,000. The bonds paid annual interest of $1,500. After three years, the bonds were sold for $86,000 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: $62,000 Common stock: Gain on sale ($160,000 $98,000 Preferred stock: Dividends paid (67 $53,000 * 3 years) Loss on sale ($39,000 - $53,000) Bonds: Interest paid ($1,500 * 3 years) Gain on sale ($86,000 $70,000) Net gain on all investments 9.540 (14,00 0 4,500 16.000 $78,040 $78,040 + 3 years $221,000 = 11.80 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables, Required: 1-a. Using a 11% discount rate, compute the net present value of each of the three investments. D -media mheducation.com/Media/Connect Production/bne/accounting/garrison 17e/Exhibit/Exhibit_148_1.jpg EHBIT 40-1 Present Value of 16 21 Penios 1 2 3 4 5 9 7 6 1010 10 11 2 PETO 15 15 SN 07 13 10 15% 16 20% 21 223 2015 0.962 0992 094 095 096 0907 090909010993 0985 0877 0370 08620055 0.347 0800 00026 0.000 0 0.005 0.000 0925 0907 0.90 0.0 0.057 0342 0.026 0812 0797 07830709 0756 0730731 078 0.7060694 0683 0672 066 0650 0640 08890064 0.300.350794 0772 051 0731 QUR 06750658 0.64 0.624 0.609 0.593 0.579 0564 0.551 0537 0.5740512 09550823 079207030735 07080683 0659 0.506 06130592 0.572 0552 0534 055 0.499 0452 046704510437 042300 0522 0714 0747 070610650 0621 053 0562 053 05190097 0.06 0.456 0.437 0.490.4020399 0.370 0.55 0.3410320 0.790 0.7060705 06060630 0.596 0564 0535 0507 04300456 0432 0.40 0.90 0.370 0352 0335 0.3190303 0209 0275 0252 0.750 0.7 0.605 0623 058 057 050 0482 0.452 0.425 0.400 0.375 0.354 0333 0.54 0295 0279 0.2630249 0.2350222 02 0731 0677 0627 0.582 0.540 0502 0.467 0.31 0.404 0.376 0.951 0327 0.305 0205 0266 0249 0233 0.21 0.2040191 0.10 10 07030645059205105000 4500.4240391 0.361 033 030 023 0263 023 0225 0209 01940001670155 0944 06760054 055 0500453 0.422 0.396 0352 0122 0295 02700200227 0208 0191 0176 09620149 00 02006 0107 0650055 05270475 0.429 0.300.35003170287 0201 027 02150195017902054 005012 010 03030094 0.036 05 0557 047 046 0.397 0356 0.39 0236 0257 0231 02000 0368 01520 0112 0.502 000 000 000 000 0.001 0.500 0.69 0.45 0.368 0326 02900258 0229 0204 02 0153 015 0100115 0400 0054 0.07 0.008 00005 0.577 0.505 0.42 0.3880340 0299 02630232 0205 09310350034 005 011 0.099 098 0.078 0.06 0.002 0.050000000 05550431 0.40 0.362 0315 0.275 02.30 0209 013003600001230108 0.005 004 000 000 0057 0.051000000000 0534 0.4500394 03090292 0252 0.2 093 0.33 04 0123 0307 0090 000 000 0002 0054 0047 000 000 000 0001 0.00036 07 0:31 0.270 0231 0198 017005 01250108 0.000 0.000 0.00 0.000 0.052 0.0450.009 0.034 0.030 0.026 0023 0.9404 0350 0295 0.250 0212 0.1300153 013001 0095 000 000 0.059 0.051 000 0.035 0.02 0.028 0.024 0.021 000 00396 0310 277 0232 000 0164 008 0000 0000 0.00 0.000 0.0003 002 0.035 0.027 0.023 0.020 000 001 0.156 037 0.32 0.250 02150178 0149 002609010087 0073 0.001 0.051 0013 0032 0.031 0.025 0.022 00 0.00 0.00 0.00 0.09 0.5590294 020 019 03640135 0112 0.09 0077 0064 005 004 000 0001 0025 0.022 000 000 000 0000 0422 030.270.226 0954015001230101 0002 0.068 005 004 0000 0032 0.026 0002 000 0015000 0011 000 000 0.00012002020211 0170 000 012 0.0910094 0000 0.00 0.00 0.033 0.027 0.022 0.000150012 000 0000 000 0.000 02900020 0197 0158012608020082 0000 0052 000 0005 0028 0.0230099 0.01 000 0000 0000 000 0000 000 035 0295 0.2330154 ons 0092 0.034 0050 0001 0.038 0.030 0004 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 0301020102200172 0.155 0.060054 0.006 0053 002 0.033 0026 0.021 0.01 0.01 0.0000 0.00 0.00 0.00 0.00 0.000 03002000207 0950 005 0.098 0.025 0.00000170037 0.025 0.0230010014 om 0000 0.00000600050004 0000002 0.733 02950 0.750 0.15 0000 0000 0.054 002 0.003 0025 0.020 00160012 000 0.00000000005 000 0.00 0.00 0.002 202001 OS 000 002000000000290022 0.00 0.00 001 0.00000060005 0.000 0.00 0.00 0.00 0.000 0306 0231 01 013 099 0.07500570040000025 0.020001500200000000005 0.001 0.000 0.003 0.0020002 0.001 0200 000097 0.00 0.00 0.00022 0.005 000 000 000 000 000 0.000 0.00 0.001 0000 0000 0000 0000 0000 000 VOLO ARXARRERS B2F Mostly sunny to search O C 59 20WT 4.2 Punt Value of any kinds of the tota PEG 95 22 ON 15% 0.962952090309350926 090909010250085 07708700362095508070800083301200020000 0000 0000 1006 15 1750 3730 uro O 1665 166 1626100 155 156 157 15255091420457 10 3 275 272 2573 2624 2.577 2530 2487 2441 2002 2001 222 223 224 2290 2914 2140 2006 2071 2012 2011 1952 3630 255 1055 3383 330 3240 31703302 3037 29742956 2055 276 277 2690 269 259 250 2494 243 244 2363 4052 420 3.791 366 3.5053517 34333552 323 327 3058 2.991 2926 2064 2103 2105 200 52 5076 92 4757 4186 455 4221 4 990 3.899 27043695359 2490 3.41 3.322457 109230295 60025706 552 52095 205 5060 4960472 4586 4423 4260 4150 4000322 3512 3700 3505 3500 24 1927 120255 133 6.463 5200 50 530 5533 5335546 9604794659 4437 434 4207 2070 29543073726 30 150010 30 7435 6.902 656 620 5995 57595517 522 512 4946477246074651 4303 4163 2013.905 3796 167225662483 10 2722 2360 7024 6710 6.418 5505 5.899 5650 5.626 521 5019 3136940432942 4054 1933 1932 157 7500306 707 700 2009 30 26 6207 593 5675453 5234 50294056 62412 2005 1902 1650 2 933593 2536 2561 6.854 6. 1926.1945.93 5660 561 5197 492 493 46 9.906 9394 353 350 904 7457 7100 67506.624 612255625583 5.342 5110 9104716 4533242034650 2017 905633599 5 296 25 8244 73676982662502003572455225005430266242550 251 11 10330 9300 3589 76062191 66.8626255055755245002S 445 4553 035) 11652 038 03069.40 BES 30 7824 73796.9 6.604 6.265 5954 5660 5.60 5.3624938473053615739 2011 126 1121 09753 9022 154 02275496729660475700475522 4900 47754575320405190 12.00 1000 1082100599372 201 202 225060064575553452735033446009 2012 304 2005 150 0305 9001 3950 83557899735659505 875.554 535 5020 40 405 404 40 20 5902662470 500 9029 35542963745970055626259592956253535901 657 23 1402912171786 1030 1000 9292 269 075250702 65.93 5665 55 467546 1903 22 1204205201 9442 877216 254500 6706359569665519 490490 43001 100 20 EST 349923031127201930 391 3205 73 72306702699 57235325 30 24 152905500 977472065445545152 25 1562245037654906750823 9071422730 7300573 685 6095706 5.6575154721 20 1598305 300313260920 991 276 2372 506 63 5783 5000 5200 956 72150 06 50027 9231 290 291 252 734 100 se 2000 SOT 602 294 7016534355055825220 151 SE54150 0270 9000 9700002224069035551 590 500 550 5225240 TA 3904 129 130 1 529550 2550 32 075176405642553556931015414304100 here to search o 59 21 Mostly sunny

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