3. (15 points Due to COVID-19, Kering Group (with famous brands such as Gucci, and Balenciaga) plans to manufacture face masks and keep the business in the future 5 years. The first-aid product business have a rate of return at of 8.5%. 54 The capital information of both firms is shown as follows: - Unit: Kering Face mask business Beta- 0.902 Investment on Face mask 3252 plant (Unit:Mile Yield of Corporate Bonda -2.78% Annual free cash flowe 1232 (Unit:Mille Shares outstanding (Unit:Mil) 126.32 Market Capital of Equity 6822000022 (UnitMil.) Debt-to-Asset (Market value) 36%e BTT (1-yr Treasury bill of France) 2% Dividend 5 Growth rate of dividend 3% Macro-level index Paris Exchange Index (6 months -1.6%e average) (Stock market index of- France) Corporate tax rate 28% le la 14 14 125 Note: During the highly risky shock periods, the security markets could get crash and generate negative returns. However, the stock of certain group companies can outperform compared with other companies. The figures in the table were given based on the real case during COVD-19.5 (1) Please calculate the Cost of Capital via Equity Financing (Re) in Kering Group by using CAPM and continuous dividend growth model respectively. (5 points) (2) Please estimate the weighted average cost of capital (WACC) of Kering Group based on the results of Question (1) (5 points) (3) Will Face mask business bring a positive NPV to Kering group ? (5 points) 3. (15 points Due to COVID-19, Kering Group (with famous brands such as Gucci, and Balenciaga) plans to manufacture face masks and keep the business in the future 5 years. The first-aid product business have a rate of return at of 8.5%. 54 The capital information of both firms is shown as follows: - Unit: Kering Face mask business Beta- 0.902 Investment on Face mask 3252 plant (Unit:Mile Yield of Corporate Bonda -2.78% Annual free cash flowe 1232 (Unit:Mille Shares outstanding (Unit:Mil) 126.32 Market Capital of Equity 6822000022 (UnitMil.) Debt-to-Asset (Market value) 36%e BTT (1-yr Treasury bill of France) 2% Dividend 5 Growth rate of dividend 3% Macro-level index Paris Exchange Index (6 months -1.6%e average) (Stock market index of- France) Corporate tax rate 28% le la 14 14 125 Note: During the highly risky shock periods, the security markets could get crash and generate negative returns. However, the stock of certain group companies can outperform compared with other companies. The figures in the table were given based on the real case during COVD-19.5 (1) Please calculate the Cost of Capital via Equity Financing (Re) in Kering Group by using CAPM and continuous dividend growth model respectively. (5 points) (2) Please estimate the weighted average cost of capital (WACC) of Kering Group based on the results of Question (1) (5 points) (3) Will Face mask business bring a positive NPV to Kering group ? (5 points)