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Required: (a). Calculate the market price of Bond A and Bond B. (5 marks) (b). Calculate the number of new bonds should be issued for

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Required: (a). Calculate the market price of Bond A and Bond B. (5 marks) (b). Calculate the number of new bonds should be issued for each of the bond. ( 2 marks) (c). In the future, if the interest rate is expected to drop, which one has greater price risk? Does it affects the cost of debt of Fortune Co,? Please explain. (5marks) (d). Calculate the new dividend growth rate. Since the dividend growth is constant after the new investment, based on DGM, please evaluate the cost of equity if Fortune Co. determined to use new share to fulfill the initial fund need. ( 8 marks) (e). If you are the CEO, will you issue new shares to fulfill the fund need? Please briefly explain your reasons

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