Mega Properties Berhad is evaluating its long term sources of financing. The sources of financing are as follows: 1) 11) 111) Issuing new preferred stocks which pay 9% fixed divided. The firm's preferred stock is currently selling for RM95. The net price of the security after issuance cost is RM90. Issuing new common stocks at RM5.40 per share. The firm paid a dividend of RM0.36 per share last year to its common stockholders and dividend is expected to grow at a constant rate of 5% in the future. Floatation cost of issuing the shares is 5% of market price. Issuing an 8% bond that will be matured in 10 years. The bond's floatation cost is 6% of the par value and currently the bond is selling at 2% premium Given 27% tax bracket, compute the cost of each financing options and advise the company on the best alternative.