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b. Mr. Jones Jackson, financial manager of All Aprind is considering new twist pretince shares and bonds. The funds will be red in two options

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b. Mr. Jones Jackson, financial manager of All Aprind is considering new twist pretince shares and bonds. The funds will be red in two options Option1 Option 2 GR Gita 10% Bonds 70.000 69. Preference Shares 70,000 70,000 Ordinary shares 60,000 50.000 The prevailing rate of Treasury Bills is 10% and the return of the Gura Stock ichi d 159 The financial manager believes that the beta of dustry in which the projecte s i 15 The corporate tax nite is 25% Required: Which of the two options will you recommend for financing the new project b. Mr. Jones Jackson, financial manager of All Aprind is considering new twist pretince shares and bonds. The funds will be red in two options Option1 Option 2 GR Gita 10% Bonds 70.000 69. Preference Shares 70,000 70,000 Ordinary shares 60,000 50.000 The prevailing rate of Treasury Bills is 10% and the return of the Gura Stock ichi d 159 The financial manager believes that the beta of dustry in which the projecte s i 15 The corporate tax nite is 25% Required: Which of the two options will you recommend for financing the new project

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