Question 5 10 Points Pelican Limited has issued debt and equity securities as follows: Debt: 5,000 bonds with face value of $1,000. These bonds are currently priced at $1,200.00 and yielding 8.2%. Ordinary Shares: 500,000 fully paid ordinary shares issued at $25.00 and currently trading on the market at a price of $24.00. The most recent dividend was $2.00, and dividends are expected to grow at 3% forever. Preference shares: 64,000, preference shares with an issue price of $30.00 currently selling on the market at $31.25 and paying an annual dividend of $2.50 in perpetuity. Tax: The corporate tax rate is 30 percent. (a) Calculate the Weighted Average Cost of Capital for Pelican Limited. (8 marks) (b) Define Business and Financial risk as it relates to M & M proposition. (2 marks