A firm has three sources of financing: equity, convertible debt, and $$regular$$ non$-$convertible debt. Can you rank the costs of capital of the three types?

Recall that A $>$ B $>$ C means that A is greater than B and B is greater than C$.$

Answer choices:

$(1)$ Equity$>$Convertible Debt$>$Debt

$(2)$ Debt$>$Equity$>$Convertible Debt

$(3)$ Equity$>$Debt$>$Convertible Debt

$(4)$ Debt$>$Convertible Debt$>$Equity