Can someone please solve #s 1&4 and show work thanks!
If you're going to make informed investment decisions, you have to seek investment information, read it, and interpret it. Fortunately, you don't have to do your own research. That's already done for you, and it's available from the companies themselves, from brokerage firms, and from the press-magazines, newspapers, and investment advisory services-and on the Web. The Web is the first place you'll want to look, with new investment sites being added almost daily. This provides all investors with the same opportunities. Still, because there are no controls on who can post on the Web, you've got to be careful of where you get your information. Everyone needs an emergency fund. Assume your best friend asks you to evaluate a list of investments for an emergency savings fund. Comment on the appropriateness of each of the following: Certificate of deposit Three-month Treasury bills Gold and silver coins Portfolio of energy stocks Money market mutual fund Jana just found out that she is going to receive an end-of-year bonus of $40, 000. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus. Now assume that instead of receiving a bonus, Jana receives the $40, 000 as a long-term capital gain. What will be her tax? Which form of compensation offers Jana the best after-tax return? Would your calculation be different if the gain was short-term rather than long-term? After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $37 per share. Over the next 12 months assume the price goes up to $45 per share and you receive a qualified dividend of $0.50 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both case, assume you are in the 25 percent federal marginal tax bracket and 15 long-term capital gains and qualified dividends tax bracket and there is no-state income tax on investment income. Categorize each of the nine different sources of risk according to the investment class to which it applies. If the risk applies to both stocks and bonds, then categorize it as "both". You just learned that a well-established company will issue a bond with a maturity of 100 years. The bond appears to be a good deal because it yields 8.5 percent. Assuming that the inflation rate stays at 4 percent, what is the bond's real rate of return today? If you were looking for a bond to purchase and hold for several years, would you buy this bond? Explain your answer in terms of future inflation bond's maturity
