Carefully read each question and answer all parts in complete sentences. At least five sentences is required per question. What might a high dividend payout ratio suggest to an investor about a company's growth potential? LE. is growth enhanced or restricted by this policy? What stage of the industry life cycle might this company be in? 1. Municipal bonds usually offer lower returns than similar taxable corporate bonds. But how does the investor know if the tax savings from the municipal bond will make up for its lower return? The taxable equivalent yield helps decide, because it facilitates apples-to-apples comparisons among securities with different tax consequences 2. Scenario: Anne in a 28% tax bracket and is considering whether to invest in a municipal bond with a 10% interest rate or a corporate bond with a 12% interest rate. Using the formula- Tax equivalent yield: Y-i/ (1-T) calculate her tax equivalent yield. Which bond should she invest in and why