You have finaliy saved $10,000 and are ready to make your frst investment. You have the three following altematives for investing fhat money: - A Microsot bond with a par value of $1,000 that pays 9.50 percent on its par value in interest: sells for $1,144.47, and matures in 14 years. - Southwest Bancorp prelerred stock paying a dividend of $328 and selling for $29.89. - Emerson Electric common stock seling for $6092, with a par value of $5. The stock recently paid a $1.16 dividend, and the firris earnings per ahare has increased from 52.38 to $3.74 in the past 5 years. The firm expects to grow at the same rate for the foreseeable future. Your - cequired rates of return for these investments are 6.00 percent for the bond, 9.00 percent for the preferred stock, and 12.50 percent for the common atock. Using this information, answer the following questions. a. Calculate the value of each investment based on your tequired rate of retum. b. Which investment would you select? Why? c. Assume Emerson Electric's managers expect an eamings to grew at 1 percent above the historical growth rale. How does this affect your answers to parts a and b? d. What required rates of refurn would make you inditerent to all three optoes? a. If your required rate of retum on the bonds is 6.00%, what is the value of Microsof bond? (Round to the nearest cent.)