You have been engaged as a management consultant by Scylace plc, a grocery retail chain. You have been asked to evaluate three alternative proposals financing expansion. The options are: to issue a bond redeemable in 20 years to issue a bond redeemable in SO years or to issue new shares. The details of the proposed alternative bonds and their expected market values are as follows: Face Value af each band Nominal Interest Rate 20-year bond 100 8.0% Predicted market price of bond 95 Sd-year bond 100 70 Scylace plc has ordinary shares with a nominal value af l each listed on the London Stock Exchange. The market price of 1 Scylace ordinary shares is 560p Over the last year, Scylace has paid a dividend af 28.00p per share. The directors are expecting the company to pay dividends af 28.35 per share over the next year and expect dividends to grow at a constant percentage rate for the foreseeable future.