QUESTION FOUR [25] 4.1 Evaluate the Weighted Average Cost of Capital (WACC) technique of decision making. (5) 4.2 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. 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 directors assertion? Justify your answer with the aid of appropriate calculations. (8) 4.3 Juanta Manufacturers shares have a beta of 1.40. At present government bonds/treasury bills present a return of 6% and the market return is 12%. Juantas 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 Juantas cost of equity using: 4.3.1. The Dividend Growth model (4) 4.3.2 The Capital Asset pricing model. (4) 4.4 Analyse the reason/s for each method presenting different answers. (4)