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4 Linda Clark received $265,000 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 $150.000. The stock paid no dividends, but it was sold for $255,000 at the end of three years. b. Preferred stock was purchased at its par value of $50,000. The stock paid a 8% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $18,000 c. Bonds were purchased at a cost of $65,000. The bonds paid annual interest of $2,000 After three years, the bonds were sold for $80,000 cBook Prim 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 eamed more than a 13% return, and he gave Linda the following computations to support his statement 195,000 Common stock: Gain on sale (5255,200 - 5150,000) Veeferred stocki Dividends paid (EX 550,000 years) Loss on sale (518,000 - 550.000) Bonds Interest paid ($2.000 3 years) Gain on sale (500.000 - 565.000) Net in on all investments 12,000 2,00) 6,000 15.000 5 106,000 31000 years 5255,000 13. 3x Click here to view Exhib 128-1 and Exh128:2. to determine the appropriate discount factors using tables Required: 1-3 Using a 13% discount rate, compute the net present value of each of the three investments 1-5. On which investments) did Linda eam a 13% rate of return? 2. Considering all three investments together, did Linda earn a 13 rate of return 2. Linda wants to use the $353,000 proceeds ($255.000 + 518 000 $80,000 - $353,000) from sale of the securities to open eta store under a year franchise contract What minimum annual net cash flow must the store generate for Linda tema 12 eur Over the year penod Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Using a 13% 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 Reg 18 > Vild drinual het cash intlow must the store genera over the 8-year period? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req3 on which investment(s) did Linda earn a 13% rate of return? (Select all that apply.). Common Stock Bonds Preferred Stock over the 8-year period? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Reg 3 Considering all three investments together, did Linda earn a 13% rate of return? Yes ONO ( Req 18 Req3 > store under a 8-year franchise contract. What minimum annual nel over the 8-year period? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Linda wants to use the $353,000 proceeds ($255,000 + $18,000 + $80,000 = $353,000) from sale of the securities to open a retail store under a 8-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to leam a 12% return over the 8-year period? (Round your answer to the nearest whole dollar). manat cash inllow

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