QUESTION 3 Zola San Bhd wants te develoo new produot though research and development which requires additional finanoing af RM2 million zol sdm Bhid is considering selling one security to raise the needed funds from the following options: To sel bonds at RM950.14 percent ooupon rate with maturity of 15 years. The underwriting fee is 8 percent of markat price. The tax rate for the company is 35 percent: ii. Fosell preferted shares at RM85 with 9 percent dividend and RM5 forissuing cost. iii To issue new oommon shares at RM23 per share and RM1.20 for flaatation cost. The company has ust paid RM0.80 in dinjelnd and the efamings is expected to grow at 9 percent annually Calculate the after-tax cost of: 1) Bond ii) Preferred shares (4 marks) iii) Common shares ( 2 marks) iv) Which source should the firm choose? Why? (2 marks) (2 marksi)