Jason and Kerri Consalvo, both in their $50\text{'}$s$,$ have $$54,000$ to invest and plan to retire in $10$ years. They are considering two investments. The first is a utility company common stock that costs $$54$ per share and pays dividends of $$1\mathrm{.}62$ per share per year $(3\%$ dividend yield$).$ Note that these dividends will be taxed at the same rates that apply to long$-$term capital gains. The Consalvos do not expect the value of this stock to increase. The other investment under consideration is a highly rated corporate bond that currently sells for $$1,000$ and pays annual interest at a rate of $4\mathrm{.}0\%,$ or $$40\mathrm{.}00$ per $$1,000$ invested. After $10$ years, these bonds will be repaid at par, or $$1,000$ per $$1,000$ invested. Assume that the Consalvos keep the income from their investments but do not reinvest it $($they keep the cash in a non$-$interest$-$bearing bank account$).$ They will, however, need to pay income taxes on their investment income. If they buy the stock, they will sell it after $10$ years. If they buy the bonds, in $10$ years they will get back the amount they invested. The Consalvos are in the $32\%$ tax bracket.

$($Note: The tax rate on dividends for the Consalvos will be $15\%$ and your calculations should ignore the $3\mathrm{.}8\%$ tax on investment income that was part of the Affordable Care Act.$)$

a$.$ How many shares of the stock can the Consalvos buy?

b$.$ How much will they receive after taxes each year in dividend income if they buy the stock?

c$.$ What is the total amount they would have from their original $$54,000$ if they purchased the stock and all went as planned?

d$.$ How much will they receive after taxes each year in interest if they purchase the bonds?

e$.$ What is the total amount they would have from their original $$54,000$ if they purchased the bonds and all went as planned?

f$.$ Based only on your calculations and ignoring other risk factors, should they buy the stock or the bonds?