You have finally saved $10,000 and are ready lo make your first investment. You have the three following alternatives for invosting that money: - A Microsott bond with a par value of $1,000 that pays 8.75 percent on is par value in interest, sells for $1,207.39, and matures in 7 years. - Southwest Bancorp preforred stock paying a dividend of $3.33 and selling for $21.36. - Emerson Electric common stock seling for $62.47, wth a par value of \$5. The siock rocently paid a $1.47 dividend, and the firm's eamings per share has increased from $2.38 to 53.89 in the past 5 years. The firm expects to grow at the same rato for the foreseeable future. Your required rates of roturn for these investments are 6.00 percent for the bond, 14.00 peroent for the prelorred stock, and 12.50 percent for the common afock. Using this informafion, answer it following questions. a. Calculate the value of each invesiment based on your required rate of retum. b. Which imvosiment would you salect? Why? c. Assume Emorson Electric's managers expect an eamings to grew at 1 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 indillerent to ail three opticns? 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.)