Excelsior Trading needs RM$800,000$ for the purpose of opening a new production factory in Penang. There are three $(3)$ alternatives of financing to be considered by the firm. Alternative $1$: Issue a $12-$year, $10$ percent bond selling at RM$1,050.$ The flotation cost is $6$ percent of the par value and current tax bracket of the firm is $40$ percent. Alternative $2$: Issue preferred shares that pays $15$ percent dividend on par value of RM$100.$ The current price of the firm$$s share is RM$95$ and cost of issuing these shares is estimated at $14$ percent of its current price. Alternative $3$: Firm$$s common stock is selling at RM$40.$ The growth rate is at a constant rate of $8$ percent and the firm has just paid a dividend of RM$1\mathrm{.}50.$ Flotation cost would be $5$ percent of the selling price. Question: Calculate the after$-$tax cost of: $($i$)$ Bond $($ii$)$ Preferred shares $($iii$)$ Common share Analyzing the cost above, which alternative should the firm choose? Why?