a) The following balances have been extracted from the statement of financial position of Tekun Berhad...

 

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a) The following balances have been extracted from the statement of financial position of Tekun Berhad as at 30 June 2021: 5% Debentures (repayable in year 2022) Ordinary share capital of RM1 each RM30,000 RM100,000 The directors of Tekun Berhad have plans to expand their business and they are considering two options. Option 1: Issue new 80,000 ordinary shares of RM1 each at a premium of 25%. Option 2: Issue new 8% debentures (repayable in year 2028) to raise RM100,000. Advise the directors of Tekun Berhad which option they should choose. Justify your decision. a) The following balances have been extracted from the statement of financial position of Tekun Berhad as at 30 June 2021: 5% Debentures (repayable in year 2022) Ordinary share capital of RM1 each RM30,000 RM100,000 The directors of Tekun Berhad have plans to expand their business and they are considering two options. Option 1: Issue new 80,000 ordinary shares of RM1 each at a premium of 25%. Option 2: Issue new 8% debentures (repayable in year 2028) to raise RM100,000. Advise the directors of Tekun Berhad which option they should choose. Justify your decision.