Explain any two ways in which a company can raise Finance?

“A company needs to analyse its financing needs formally before raising finance.”
a. Explain any two ways in which a company can raise Finance? (4 marks)
b. Supa Inc. is considering plans A and B for financing their new Systems project of OMR 6 million. Plan A involves issuance of 250,000 shares of common stock at the current market price of OMR 2 per share. Plan B involves issuance of OMR 5 million, 8% bonds at face value. Income before interest and taxes on the new plant will be OMR2.5million.
Income taxes are expected to be 20%. Supa, Inc. currently has 100,000 shares of common stock outstanding.
Advice Supa Inc. as to which plan would be better and why?

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