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the case below provides information needed to establish asset allocation guidelines for a new client Susan .Susan is the president of R industries a US based company whose sales is domestic and whose shares is listed on te NYSE.The following additional facts reflects her current situation

1. Susan is single 58 years old .she has no immediate family, no debt and owns a residence. she's in excellent health and covered by R industries health insurance plan that continues after her expected retirement at the age of 65

2.her basic salary is USD500,000 a year .inflation protected is sufficient to support her present life style that can no longer be sustainedafter her retirement

3.she has USD 200,000 of savings from prior years held in form of short term investment

4.R industries incentives plan participation has resulted in her ownership of cost stock worth USD 10,000,000 in current market value. The stock has received tax free status that is subjected to 35%on the entire proceeds sold .she expect to hold the stock at least until her retirement.

5.her present level of spending is the current annual inflation rateof 4% which is expected to continue after her retirement.

6.susan is taxed at 35% on all salary , investment income and realized capital gain .her composite tax rate is assumed to continue at this level indefinitely.

7.susan orientation is patient ,careful and conservatives in all things .she stated that on annualafter tax real return of 3% would be completely acceptable to her if it were achieved in a context whereby an investments portfolios created from her accumulated savings was unlikely to decline by more than 10% in nominal tax in any given 12 month period

Required

Draft an IPSfor Susan include relevant calculations

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