****PLEASE ANSWER THE QUESTION BRIEFLY, THANK YOU !

Question 3 Bakul Holdings has decided to invest in a project in Spain. Considering that RM8 millions of external funds is needed, the firm is required to identify a suitable source of financing for the project. The following are three sources of financing available. Source 1 Issue bond that pays 7 percent coupon with a maturity of 10 years. The firm plans to sell the bond at RM950. The underwriting fee is 3 percent of the selling price. The current corporate tax is 35 percent. Source 2 Issue preferred share that pays 10 percent dividend of its par value. The floatation cost is at 15 percent of its current price of RM165. Source 3 Issue common shares at RM35 with growth rate of 7 percent. The recently paid dividend was RM5.25 per share. The underwriting fee is 8.5 percent of the selling price. a) Calculate the after-tax cost of debt, cost of preferred shares, and cost of common shares. b) Determine the source of financing that Bakul Holdings should choose with clear justification. (10 marks)