Tom has $15,000 cash throughout which to take a position and is deciding between two investments. Funding A is an organization bond that has an fee of curiosity of eight% paid yearly. Funding B is shares in ABC Agency, a public agency that at current trades at $10 per share. ABC has an anticipated growth of 6% yearly and would not pay dividend. Every investments have the equivalent menace. Tom expects to cash out his funding in 5 years. Assume that any after-tax proceeds from the funding could be reinvested within the equivalent funding. Take into consideration each question below independently.Set-up the algebraic system so that Tom can determine his marginal tax price in order that he is indifferent between the two investments (chances are high you may treatment the marginal tax price, nevertheless it is not required). Assume for this half (b) that Funding A has a 40% inclusion price, and assuming that Tomâs marginal tax price is 40%, compute the annual growth price inside the shares of ABC so that Tom is indifferent between Funding A and Funding B.Assume that the federal authorities decides to abolish the capital optimistic components tax price and tax all of the issues on a 100% inclusion basis.