CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 57 Discussion

GH is seeking to finance a substantial new project that is guaranteed to enhance the profitability of the entity.Its keydeterminants in deciding upon the best source of finance are to balance the following requirements:

1) to minimise the costs of issue of the finance;

2) to avoid the need to find cash to repay the source of finance; and

3) to ensure that the long-term gearing level does not increase.

Whichof the following financing options best meets these requirements?