Aliff Trading Berhad is a publicly held company located in Rawang, Selangor. The company operates a quite successful chain of cheese products across South East Asia. Currently, the company received two major investment proposals. One of the proposals was issued by the company's domestic manufacturing division, and the other came from the firm's distribution company. Both proposals promise a profitable return. Before choosing any of the proposals, Aliff Trading Berhad needs to raise some funds to finance the investment. The Company's balance sheet is as follows: Currently the company's common stock is selling for a price equal to 2.5 times its book value and the firm's investors require a 12 percent return. The firm's bonds command a yield to maturity of 5.5 percent, and the firm faces a tax rate of 28 percent. At the end of the previous year, Aliff's bonds were trading near their par value