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The finance director of Mewah Berhad is proposing to issue new preference shares to the public in order to raise money for the companys expansion.

The finance director of Mewah Berhad is proposing to issue new preference shares to the public in order to raise money for the companys expansion. Required: (a) Differentiate between ordinary shares and preference shares. (4 marks) (b) Critically discuss FOUR (4) reasons of why the finance director prefers to issue new preference shares instead of ordinary shares. (8 marks) (c) Explain FOUR (4) ways in which a company can mitigate their agency problem. (8 marks)

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