As the CFO, you can also invest ($3 M) in two opportunities: A) Invest in a bond that pays an annual interest rate of 6.5 % or B) Purchasing a share of stock in Co. ABC for $110 that after 1,2, and 3 years is forecasted to pay an annual dividend / share of $ 5. Your price target to sell this stock is $130 after three years. Question: Which approach (bond or equity) do you recommend investing in ? Explain your company's investment approach as it relates to $ placement, timing, risk & reward concerns / opportunities, taxability, liquidity, time horizon, etc... Use any form of financial ratio and business analysis in your thought process. What other factors also need to considered in your selection analysis ? Inflation, deflation, monetary, fiscal policy, FOREX, interest rate trends