120] QUESTION TWO 2.1. At a board meeting a director remarks "seling 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 The sale of 40 000 preference shares at R10 per share or a. b. 4000 debentures of R100 each. NB: the tax rate is 30% Do you agree with the director's assertion? Discuss with the aid of calculations. 22. Venus Mining shares have a beta of 1.40. At present government bondstreasury bills presert areturn of 6% and the marketntumis42%. Venus's dividend was R2.20 per share last year and they expect dividends to grow at 5%. Their shares sell for R30 per share at present(par value R20). Calculate Venus's cost of equity using 22.1. The Dividend Growth Model 222. The Capital Assets Pricing Model. 2.2.3. Explain the reason/s for each method presenting different answers. (10) 2.3. List 3 disadvantages of the Capital Asset Pricing Model (CAPM)