Balance Sheet of WHC as of 31 December 2019 Assets Cash at Bank $121,345,000 Accounts receivable $142,393,000 Inventory $101,884,000 Marketable securities $788,000 Plant, machinery and equipment $4,070,382,000 Intangible assets $22,946,000 Exploration and evaluation $570,194,000 Total Assets $5,029,932,000 Liabilities Accounts payable $214,564,000 Bank overdraft $550,000 Commercial bills (due 31st Dec 2020) $119,253,000 4.75% Coupon bonds (due Dec 2029 issued @$100 each) $1,439,226,000 Shareholders' Fund Common stock 1,026,250,427 shares @ $2.927 each $3,003,835,000 Retained Earnings $252,504,000 Liabilities + Shareholders' Fund $5,029,932,000

Capital Structuring Decision (25 marks) In the next phase, WHC aims at expanding its operation beyond New South Wales. WHC needs to raise more capital for the purpose. It is advised that the company would be more valuable if it included more debt in its capital structure.

Analyse WHC's capital structure and give advice with reasonings to the WHC executives if they should use more debt to finance their future expansions.