Part 3: Q2. Equity & Fixed Income (10 marks) You wish to invest in either a dividend paying stock or a series of short-term investment in fixed income instruments, whichever one provides a higher "effective p.a.%" Return on Investment as described below for the same period. Provide your calculations and reasonings. 1) Investing in a 1000 shares of a dividend paying stock. a. First twelve months. Stock price is at 125 at initial investment and estimated to reach 130 within one year. You also expect to receive a dividend of 4.25/share at the end of this period. b. Second twelve months. i. Invest all of the dividends receive at the end of the first period in a bank Fixed Deposit whose offering rates are for 1-year at 0.40% p.a. and for 2-year 0.60% p.a. Choose only ONE deposit period. ii. Continue to hold the same stock for another twelve months, where the share price is estimated to be at 145 by the end of the period. You also expect to receive a dividend of 5.00/share at the end of this period. iii. Sell all stocks and withdraw from Fixed Deposit account at the end of this period in order to realize Return on Investment.