Evaluate the director assertion with the aid of appropriate

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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.

Problem 1: Evaluate the director's assertion with the aid of appropriate calculations.

Reference no: EM132928109

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