The annual investment returns are as follows:

Year 1 - (13.40%) Year 2 - (23.37%) Year 3 - 26.38% Year 4 8.99% Year 5 - 3.00%

Year 6 - 13.62% Year 7 - 3.53% Year 8 (38.49%) Year 9 - 23.45% Year 10 - 12.78%

Year 11 - 0.00 Year 12 - 13.41% Year 13 - 29.60% Year 14 - 11.39% Year 15 - (0.73%)

The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.

1. Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis. Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.

2. What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?