60.1K

Verified Solution

Link Copied!

please answer 1-a and use tables provided for calculations !! thank you

6 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 Lindo's behalt 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 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 Bonds were purchased at a cost of 570,000. 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 5. 62,00 Costock Gain on sale ($100.000 - 590,000 Preferred stock Dividends paid (55) years) Los on sale $59.000 - 553,000 Sonds Interest paid (51,500 years) in on sale $5,000 $70,000) 9.540 4,500 25,000 $ 78,00 57.00 51.00 6 Click here to view and Exhib 143-2. to determine the appropriate discount factors) using tables Required: Uung a discount rate, compute the net present value of each of the three investment 1. On which investment Linda carn a 11 rate of return 2 BOSTS-1 Pelante o 5 1 OM 1 203 09020952090 090509260901090909010990 GR 071 070 002 0.855 047 0.0000003200000000100 0.55 0.9070300073 085705420320 081209707130709 07560733 0.7310130700064 063 062 0.6015500610 0123 01510007940772075107120006750600064 0.03 0.000 0 0.5 0554 0.55 093705242 0055 02920703073507080603 0650 0035 0.03 052 0572 050 0534 0996049 0482 04670457 3370 0122 0714 070706810550 0621 0590 057 056 0510 0497 0.78 0.456 0.437 0.41904030386 0.300.355 04103 0700750X06060606300506 054 05350507 0.400 0.456 032 04100190 0370 0.352 0335 0.31903030200020202 07007 0.0050023 03 04 053 0.432 0.452 0425 0.000270 0354013003140296 027 0265 0200235072200 073177062705820540 0.502 046704134 0.000 0.375 0.2570327 0.305 0205 02600 74902300218 0.2040191 012909 0.006450592 0.54 0.500 0.400 0.44 0.391 0361 033 030 0294 026 0203 0225 0209 01940000167 0155 054 004 06750658055800 0063 0.22 0.300.352 0.12 0.29 0.220022 0.22702000191 10 0102 0.1340120 010 OU 050 055 05270475 0.429 038 03500317020702010237 02150950170 0.362 0140135 01230 0100 0.00 0.00 050551 0467041 0.397 0.356 0.319 020 0257 0231 02000187 058 0152 0170124 0112 0.902009200300750.000 sot 050 0.45000503600126 0290 0.250 07200204 070201600145 0130 0716 00 0033 0084 0.0000 0.00 0.055 0.57705050412 0.30 0.340 0299 0203 0232 0205 018103000 0.125 011 0 099 0.003 007 008 00620055004064 555000362 0.3150275 020 0209 03301000100012301000005 0084 0.074 0065 0.087 0.051 0045 0.0100005 0534 0458003090292 0252 02801310163 0141 0123 0102 0030 0.081 0.07100620.054 0.047 00420.0080002 0.028 0004360371 0.31 02700231 0198 ond 010012501000093 0.000 0.009 0.000 0.0520045 0.09 0.0540030 0.000023 0.400.450.500.298 0.250 021201800.1500130 0095 0081 00090059 0.051 004 00390.002 0.0200024 0021 0.05 03000281 0277023200166 010 0195 0.090 0000 007000600051 0.003 0.00031 0.027 0025 0.020 000 001 0056 077030202550215 0.178 0100 030400820073 00010051004 003700910025 0.022 000 000 000012 0.0002590294 020 01990164 005 0112 0093 007 0064 0.053 00440037 001 0026 0.002 0.000015000000000 042 0342027802200184 0150 01220101 0.001 0068 0656 0.0400033 0032 0.026 0022 000000150010000000007 0.006 0202020211 01100 OTO00910074 0.00000430046 0.0330027 0022 0.01 0.0150000100009 0.000000 000100247 0197 01510036 07020002 0.000 0.053 000 0035 0.028 0023 0.010001000100100008 0.002 0.005 0.005 035 0295 02330186 000 0.0920M005800070038 0030 0.02400200016000000000000000005 0.005 0.001 03020102200172 Ot35 006 0054 0.065 000 000 0033 0.025 0.0210017001001 000000000000005 0.004000 2 0207 0151 0125 0090 0.071 0.00000417 0.000029: 0023 00 00 00 0 000 000 0005 0.000 0.000000 0310255 026 0.150010 0090 0.009 0054 004200330026 0.0200.0160012 000 0.008 0.005 0.005 000000000020002 2005 01 0107 002 0.0630048 0.03 0.0290022 0.01 0.054 0011 0.008 0.005 0.005 0.0040003000200020002 OBC02710 009900750057004001 0.0260020 001500120000 0.00 0.005 0004 000000000000000001 0203020097 0.0450.002 0.022 0.015001 0.008 0.005 0.005 0.005 0002 0.001 0.001 0.001 0000 0000 0000 0.000 0.000 20 22 2 24 30 100 40 earch o BE 59 84F Cloudy Period 2 1 LOS SETE HOT YO 09 11 COLE 14 15 1 5 10 M 20 30 092090 091 0.920 09 090909010893 0885 om 00003620355 000 0.000333 026 020000000000 113 1000 1750 1730 17010901660 1612 162010051161547 1520 1500 109) LD 2261 26242772531 247 2444 2402 2361 222 223 2246 2.210 2114 200 201 2002 2001 1540 2405 230 1240 270 302 2001 2.4 2.99 2855 2.7902942000 2001 2092540 2.412.4412104 2302 404212 4900 2093 2090 1791 1696 2005 1517 142152121421993122305 291 292 264 2003 2002 525.076 1977 4.02 130 423551214 39907809374368563509 1690 3:10 1320 325 1183002 1020 2051 6002575582 529520000 45242 4504210001122123700 3605250824011121221 0.000 620 570 5035 5035 5045004799 000 440 454 4207 4073954301171101110111 20 6.30285156247 5965 57995517 512 5132 2040 472480741514302415 905 106 107 108 1 7722 7360 1024 0. 145 55650 5.00 521050141334650 454 409 4192 40543923370035 8700 3305 7583 1499 709 680535 6.207 5938 5675453 5234 502941364656 16 247 405510277 105 186 134 2013 7536 7100 6846492 6191599 5.600 5421 5107 1988 47931641 1294204197 2005 12013123 9906926 BUS 1904 7407 67506424 602 530 533 5342 515 49104715 2623 20 121 599 295 3244 7706 73676902 6621 62 6.002 5724546052295.000 48024 42205 100 1190 10.300972 9100 50 00 76007191 G40262 5:1475575 5:124 50921378467514093 2001 17652113306 9:41 051 7824770.9746.604 0.205 5954500510553624930730 4.536 457 400 403210 201220 10.477 902 3.544 3.0222549720 67296.73 604575475522 990 775 576 2016 DO 1928 10.0539372 750 201 1700 72500 0.467 68205550452735043040004 0 000 1104 2005 15 103389604 1950 036570397100 993 85061815175504 5.316502043046563001 11500 12.4021147005949 0129 AM1963 7497025623 5250 52295625353 47065 4250 4279 14.029 12 1764 1083007292 1649 80757502 103 6.687 82 503 005 514 51274625400 29412 1451 1204201 201402 2118 1515 70 1460 56 5.40 5140490000 15000 350 55 39 12.703112723719,500 881 266771 720002920900045723551671625 4700 07 20379912050409 10.5299207 1965 15437734 2263635634807365450518271 112 116SE65 20 23306656695040 5905 51 100 182000020 361 ge 2312000 5400 5200 500 3301 1632 1000027 202 5420 76099354670 5.4025264344521404154 000 1330121110510 9.00.602 70517411653405250 5.500 522190547193 3155 90185022240.0 8.55 165.20 5.50 5229 153 154 7295240112010747604 1055 7490 100 117 0950 150427900901224715471051205541 527 470015010 BE 21 24 27 25 50 ere to search o el 59 BF Cloudy

Answer & Explanation Solved by verified expert

See Answer