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  3. a. a company has share capital of ksh. 100 million

a. A company has share capital of KSh. 100 million and is planning to invest...

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a. A company has share capital of KSh. 100 million and is planning to invest an additional fund of KSh 8,000,000 towards its expansion programme. Suggest the best option from the following from tax planning point of view (10mks) To issue share capital of KSh 8,000,000. To borrow KSh 2,000,000 @ 18% p.a and to issue debentures of Sh. 2,000,000 @ 11% pa and the balance amount be collected by issuing shares in the public To issue debentures for KSh 5,000,000 @ 11% p. a and the balance be collected by issuing shares in the public Rate of return is 30% before paying any interest and tax Rate of tax is 30%

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