Kindly provide accurate answers to the following assignments. Thank you

A B Equity 10m 8m 8% debt 4m 12m You are going to show how arbitrage can make the value of the companies equal. Mr Jones has $400,000 to invest. Investing in these two companies and borrowing and lending in the risk-free market are the only choices available. (i) What will Mr Jones earn if he puts all his savings into Company B? (ii) What will Mr Jones earn if he puts all his savings into Company A? (iii) Company A is ungeared and Company B is geared. The gearing of a portfolio is a measure of its risk, so a portfolio of Company A's shares is less risky than a portfolio of Company B's shares. Mr Jones can increase the riskiness of a portfolio that includes Company A's shares by borrowing EX in the risk-free market (which is assumed to be available to both companies and individuals at the same rate) and using all the available funds ( $400,000+ EX ) to invest in Company A's shares. Find the value of X that makes the two investment portfolios equally risky. (iv) For this value of X compare the expected returns from each of the two investment portfolios. (v) What will happen to the market prices of the shares in Company A and in Company B? (vi) Assuming that Company B's shares take all the adjustment, how far will the market price of Company B's shares fall? Explain.In a South American country, which uses dollars as its national currency, price inflation has been running at 20% pa for the last 10 years. Calculate the average annual real rate of return for each of the following investments: (i) A set of gold coins purchased for $14,000 on 1 January 2003 and sold for $20,000 on 31 December 2005. [1] (ii) A painting purchased for $3,000 on 1 March 2006 and sold for $3,200 on 1 September 2006. [1] (iii) A diamond purchased for $13,000 on 1 July 2007 and sold for $10,000 on 1 July 2009. [1] (iv) A statuette purchased for $7,500 on 1 November 2002 and sold for $19,000 on 31 December 2009. [1]On 1 January 2000 an investor purchased E10,000 nominal of a stock that pays coupons on 30 June and 31 December at the rate of 6% pa and is redeemable at par on 31 December 2012. The investor, who has no unused tax allowances, is liable for income tax payable at the rate of 40% on each 1 August in respect of coupons received during the previous calendar year. If the investor's net redemption yield on this investment is 5% pa effective, calculate the price paid for the holding. [5]