4.2 QUESTION FOUR [25] 4.1 Evaluate the Weighted Average Cost of Capital (WACC) technique of decision making. (5) At a board meeting a director remarks "Selling preference shares with a return of 9% or debentures with a return of 9% is really one and the same thing". The company has the option of raising the R400 000 through either. a. The sale of 40 000 preference shares at R10 per share or b. 4 000 debentures of R100 each. NB: The tax rate is 30% Do you agree with the director's assertion? Justify your answer with the aid of appropriate calculations (8) 4.3 Juanta Manufacturers shares have a beta of 1.40. At present government bonds/treasury bills present a return of 6% and the market return is 12%. Juanta's dividend was R2.20 per share last year and they expect dividends to grow at 5%. Their shares sell for R30 per share at present (par value R20). Calculate Juanta's cost of equity using: 4.3.1. The Dividend Growth model (4) 4.3.2 The Capital Asset pricing model. (4) 4.4 Analyse the reason/s for each method presenting different answers. (4)