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Star Pty Ltd ('Star') is a successful tech company. Star Ltd needs to raise capital to fund development. The Board is considering two possible ways

Star Pty Ltd ('Star') is a successful tech company.

Star Ltd needs to raise capital to fund development. The Board is considering two possible ways of raising the capital. First, the possible public issue of redeemable preference shares; and the second option is to borrow money from Cheatem Bank.

REQUIRED:

Advise Star of the advantages and disadvantages of both methods of capital raising.

T

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