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1 ) At a Finance Committee meeting a director remarks Selling preference shares with a...

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Accounting

1 ) At a Finance Committee 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 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% Evaluate the directors assertion with the aid of appropriate calculations.

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