At a Board meeting a director remarks: selling preference shares with a return of 9%or debentures with
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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 orb. 4 000 debentures of R100 each.NB: the tax rate is 30%Do you agree with the directors assertion?Discuss with the aid of appropriate calculations
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