Free Essay Example - School Versus Work

Published: 2023-03-19
Free Essay Example - School Versus Work
Type of paper:  Essay
Categories:  School Money Financial analysis
Pages: 5
Wordcount: 1318 words
11 min read

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell any of your 500 shares of Apple stock you bought five years ago, 100 Apple bonds (each with a $1,000 face value and a 3.25% coupon rate) that are five years from their 10-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

The following calculations will be crucial when making the decision on how to finance my education plan.

Number of years =10-5 (years)

  • = 5years

Computing the coupon rate each year =3.25% of $100,000

  • = $3250 coupon rate per year.

Year Amount in $

  • First 3250
  • Second 3250
  • Third 3250
  • Fourth 3250
  • Fifth 100,000 + 3250 = $103250

The due amount of the bond for five years of sales will be determined by finding the total cost of the four years and adding it to the amount realized during the fifth year, as illustrated below.

Five-year bond sales =Total cost for the four years + cost of the fifth year

= (3250 4) + 103250= $116250

The above computations and the overall nature of the case show that it will be vital to selling the 500 Apple stock shares as opposed to depending on the 100 bonds from Apple. Relying on Apple's 100 bonds will not only take an extended period, five years, to mature but also generate more costs when compared to selling the 500 Apple stock shares.

What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.

There are various advantages and disadvantages of selling a combination of stocks as well as bonds. The first benefit is that I will not have any form of debt with anyone for the money used to facilitate my education. Secondly, I will not lose a substantial amount of the coupon by selling a limited amount of bonds alongside more shares. Lastly, selling both the stocks and bonds will be crucial in helping me to diversify the portfolio, which will, in turn, be vital in reducing the associated risks (Tolikas, 2017). The first disadvantage associated with selling stocks and shares is that I will lose the profit incurred from Apple stock. Apple experiences constant changes in its stock value, which, in most cases, are often on the increase as a result of the company's profitability. Lastly, selling both the stock and bonds will culminate in a loss of a high amount.

Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

The most appropriate step to undertake in this case will be selling a combination of the stock and bonds. Combining the two options will lead to equal factoring in the sales distribution. This assertion implies that both the bonds and shares of Apple will be about 50% of the total amount, which is $100,000. This cumulative value will, in turn, generate a total of $50,000 in terms of bonds and stock. The ultimate financial reasoning behind this decision will rely on the need to diversify the portfolio and hedge out the associated risks.

Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data.

The above scenario does not address any form of a job; instead, it deals with the decision associated with the sale of bonds and stocks from Apple, Inc.

Bonus versus Stock

The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company's stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

The nature of the above scenario shows that going for the bonus money would be the best approach due to the associated monetary time value. It is crucial to underscore the fact that share values tend to be highly flexible; it may increase or decrease with time (Tolikas, 2017). Hence, the money received on different days tends to differ in terms of its value.

What are the advantages and disadvantages of each option? Be sure to support your answers.

Every option in the above case has unique advantages and disadvantages. The benefit of choosing the bonus option is that it will generate a considerable amount of cash to facilitate the desired studies. However, the main problem of going for the bonus is that it will lead to a remarkable financial loss following an increase in the price of the company's stock (Amadeo, 2019). The advantage of selling the stock is that it will lead to more capital gains in case of an increase in its price. The most significant setback of taking shares will be that I will incur additional costs when receiving cash through the selling technique.

What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

The best option to undertake in this case will be going for the $5,000 bonus because it will generate cash in hand with zero risks as opposed to the stock share approach.


While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder? Be sure to reference any applicable statutes or laws.

According to Karmel (2016), the Securities Act of 1933 requires registration of all businesses in the United States to give the overall mandate of providing accurate, valid, and reliable information about the securities offered for sale. The Act also holds companies to various rules and regulations to ensure that no one engages in any form of financial fraud across the country. Therefore, the unregistered company will have a far-reaching impact on me as a potential employee or stakeholder because the law will not allow trading (Fletcher & Plette, 2008). Doing any business with the unregistered organization, such as selling or buying of shares and stock, will culminate into breaking the law, and I may, in turn, face a lawsuit, which could culminate into fines or sentencing.

You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?

There are various federal and stakeholder legal requirements that I must be familiar with to succeed in my job. First, I must be aware that the United States Federal government created and enacted the Sarbanes Oxley Act in 2002 to promote improved corporate responsibility concerning matters finance (Fletcher & Plette, 2008). Secondly, it is critical to be familiar with the 1940 Investment Advisors Act, which defines the overall roles and responsibilities of any investment advisor. This legal requirement specifies what qualifies to be investment advice. Also, the Investment Advisors Act provides appropriate directions on who can register not only with the state but also the federal advisors to get its dispensational mandate (Karmel, 2016). Thirdly, I must be aware of the 2010 Consumer Protection Act, which seeks to safeguard the consumer against all forms of exploitation by unscrupulous sellers and prevent unfair trade practices in all types of consumer transactions.


Amadeo, K. (2019 November). Benefits of Investing in Stocks Vs Disadvantages. The Balance. Retrieved from

Fletcher, W. H., & Plette, T. N. (2008). The Sarbanes-Oxley Act: Implementation, significance, and impact. New York: Nova Science Publishers.

Karmel, R. S. (2016). The challenge of fiduciary regulation: The Investment Advisors Act after seventy-five years. Brooklyn Journal of Corporate, Financial & Commercial Law, 10(1), 405-436. Retrieved from

Tolikas, K. (2017). The lead-lag relation between the stock and the bond markets. The European Journal of Finance, 24(10). Retrieved from

Cite this page

Free Essay Example - School Versus Work. (2023, Mar 19). Retrieved from

Request Removal

If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:

Liked this essay sample but need an original one?

Hire a professional with VAST experience!

24/7 online support

NO plagiarism