Criestion 5 The following infomation is analisble for the caplai structure of Nice Fathion Promip: Deft thin ancing: a corporate bond issise that pays 10.5\% annias coupon rute with an annus beforetax yeid to maturity of 11%. The bond lavie has tace value of $1,000 and wall mature in 20 years. Equily finanding: an ordinay share itwe of which the compary mans gement plan to pay a $550 dWidend per share in the next financial year. The firm is maintaining 5% annual growth rate in dMalends, which is expected to continue indefinitely. Pewountedt a. Calculate the current price of the corporate bond for the Nice Fashion Group7 (3 marlas) AMSUSF al - b. Calculate the current value of the ordinary share of the Nice Fashion Group if the average return of the shares in the same industry is 13.5% ? (2 marics) ANSWKR b) c. Calculate the current market value (rounded off to the nearest whole number) and capital) structure of the Nice Fashion Group af there are 3,000 bonds and 25,000 shares available on market now (rounded off to two decimal places). ANSWER C): d. Compute the weighted average cost of capital fWAcC) under the classical tax syatem for the Nice Fashion Group, given the company tax rate of 30n s. (2 maric) (4marks)