Question: please help with question I need it by today. thank you! Linda Clark received $219,000 from her mother's estate. She placed the funds into the

please help with question I need it by today. thank you!

please help with question I need it by today. thank you! Linda

Clark received $219,000 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 $96,000. The

Linda Clark received $219,000 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 $96,000. The stock paid no dividends, but it was sold for $170,000 at the end of three years. b. Preferred stock was purchased at its par value of $48,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $34,000 c. Bonds were purchased at a cost of $75,000. The bonds paid annual interest of $4,500. After three years, the bonds were sold for $77,000 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 12% return, and he gave Linda the following computations to support his statement Common stock: Gain on sale ($170,000 $96,000) $74,000e Preferred stock: Dividends paid (6% x $48,000 x 3 years) Loss on sale ($34,000 - $48,000) 8,640 (14,000) Bonds: Interest paid ($4,500 x 3 years) Gain on sale ($77,000 - $75,000) 13,500 2,000 $84,140e Net gain on all investments $84,140 3 years $219,000 -12.80 % Click here to view Exhibit 13B-1 and Exhibit 13B-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? 2. Considering all three investments together, did Linda earn a 12% rate of return? 3. Linda wants to use the $281,000 proceeds ($170,000+$34,000 $77,000 $281,000) 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 10% return over the 12-year period? Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2 Req 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 Req 1A Req 1B Req 2 Req 3 on which investment(s) did Linda earn a 12% rate of return? (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) Common Stock Bonds 10 Preferred Stock Req 1A Req 2 Req 1A Req 2 Req 3 Req 1B Considering all three investments together, did Linda earn a 12% rate of return? Yes No Req 1B Req 3 Req 1A Req 1B Req 2 Req 3 Linda wants to use the $281,000 proceeds ($170,000 + $34,000 + $77,000 = $281,000) 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 10% return over the 12-year period? (Round your answer to the nearest whole dollar.) Minimum annual net cash inflow Req 3 Req 2

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