Montreal Comedy Clubs Limited (MCC) has enjoyed success and now has $500,000 to invest for eighteen months

Question:

Montreal Comedy Clubs Limited (MCC) has enjoyed success and now has $500,000 to invest for eighteen months in either bonds or shares before it starts construction on a new club in Vancouver. See the relevant data below. You can ignore taxes since the government has declared a two-year tax holiday for entertainment companies in Canada.
Investment.................................................... $500,000.00
Share price-Now ............................................ $ 80.00
Estimated Share price-In 18 months ..................... $ 85.00
Quarterly per share ............................... $ 2.00
Semi-annual bond interest ...................................$ 35,000.00
Prevailing interest rate ....................................... 12%
Required:
Prepare calculations and make a recommendation as to which is the better investment for MCC.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...