Mzizima Ltd is planning a simultaneous issue of debentures and preference shares. The features of debentures and preference shares are as follows: Debentures Preference share 1,000 Disc 50 12% 10yT At par 2% Face Value Issue price Coupon/Dividend 1.000 Prem 100 896 10yrs Prem 100 196 Term Redemption Price Floatation Cost a) Assuming a tax rate of 40%, find the cost of debenture and preference shares. b) What difference does it make to the shareholder if the capital is raised by issuing debentures or preference shares? c) The impact of shareholders' wealth is not equal by issue of instruments. Why should Mzizima Ltd issue the disadvantageous instrument