my QUESTION THREE 21. At a board 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". [20] The company has the option of raising the 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% Do you agree with the director's assertion? Discuss with the aid of calculations. (8) 3.2. Izaka Mining shares have a beta of 1, 40. At present government bonds/treasury bills present a return of 6% and the market return is 12 %. Izaka'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 Izaka's cost of equity using: 3.2.1. The Dividend Growth Model. 3.2.2. The Capital Assets Pricing Model. 3.2.3. Explain the reason/s for each method presenting different answers