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will upvote. thank you Linda Clark received $221,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the

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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 $110,000. The stock paid no dividends, but it was sold for $190,000 at the end of three years b. Preferred stock was purchased at its par value of $42.000. The stock paid a 4% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $28.000 c. Bonds were purchased at a cost of $69,000. The bonds paid annual interest of $3,000. After three years, the bonds were sold for $74,000. The securities were all sold at the end of three years so that Lindo would have funds available to open a new business venture. The broker stated that the investments had earned more than a 12% return, and he gave Linda the following computations to support his statement $ 80.000 Common stock: Gain on sale ($190,000 - $110,000) Preferred stock: Dividends paid (4+ $42,000 K 3 years) Lons on sale ($28,000 - $42,000) Bonds: Interest paid ($3,000 K 3 years) Gain on sale (674,000 - $69,000) Net gain on all investments 5,040 (14,000) 9.000 5,000 $ 85,040 $85,040 + 3 years - 12.808 $221,000 Click here to view Exhibit 128.1 and Exhibit 128-2, to determine the appropriate discount factor(s) using tables Required: 1-a. Using a 12% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 12% rate of return? Considering all three investment tonather dir linda earn a 17% rate of return? 4 $83.040 years $221,000 - 12.80 Prire Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables, Required: 1-a. Using a 12% discount rate, compute the net present value of each of the three Investments 1-b. On which investments) did Linda com a 12% rate of return? 2. Considering all three Investments together, did Linda earn a 12% rate of return? 3. Linda wants to use the $292,000 proceeds ($190,000 - $28,000 $74,000 - $292,000) from sale of the securities to open a retail store under a 12-year franchise contract. What minimum annual net cash Inflow must the store generate for Linda to earn a 9% return over the 12-year period? Complete this question by entering your answers in the tabs below. Req IA Reg 1 Reg 2 Reg 3 Using a 12% 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) Net Present Value Common stock Preferred stock Bonds RG 1 Reg 1B > 4 133.040 - years - 12.101 3221,000 Click here to view Exhibit 123.1 and Ext 128.2. to determine the appropriate discount factors) using tables Required: 1. Using a 12% discount rate, compute the net present value of each of the three Investments I-b. On which investments) did Linda earn a 12% rate of return? 2. Considering as three investments together did Linda carn a 12% rate of retur? 3. Linda wants to use the $292,000 proceeds ($190,000 $28,000 $74,000 $292.000) from sale of the securities to open a retail store under a 12 year franchise contract. What minimum annual net cash inflow must the store generate for Linda to eam a return over the 12-year period? Complete this question by entering your answers in the tabs below. Res 1A Reg18 R2 Rre Unda wants to use the $292,000 proceeds ($190,000 $28,000 + $74,000-$292,000) from sale of the securities to open retail store under a 12-year franchise contract. What minimum annual net cash intow must the store generate for Linda to cam a 9% return over the 12-year period? (Round your answer to the nearest whole dar) Minimum annunci indo

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