Emerson Electric's managers

Your required rates of return for these investments are 6 percent for the bond, 7 percent for the preferred stock, and 15 percent for the common stock. Using this information, answer the following questions. 1. Calculate the value of each investment based on your required rate of return. 2. Which investment would you select? Why? 3. Assume Emerson Electric's managers expect an earnings downturn and a resulting decrease in growth of 3 percent. How does this affect your answers to parts 1 and 2? 4. What required rates of return would make you indifferent to all three options?