Colour Life Berhad requires RM10,000,000 to fund their new plant in Johore and is considering three financing options. The corporate tax rate is currently 35 percent. Alternative A To issue a 10 percent, RM100 preferred share at a 5 percent discount. The cost of issuance is estimated to be 4 percent of the selling price. Alternative B To issue a 15-year, RM1,000 straight bond at a 5 percent discount. The bond will pay a 10 percent coupon annually. The floatation cost is set at 4 percent of the selling price. Alternative C To issue a common share at RM25 per share. The dividend paid was RM1.50 and it is expected to grow at a constant rate of 7 percent. The floatation cost is set at 10 percent of the selling price. 24. Determine the annual coupon that Colour Life Berhad will pay for a unit of its bond each year. A. RM50 B. RM100 C. RM150 D. RM1,000