Question 2 (a) Discuss the various methods of raising equity capital that are available to U.K. firms. [40%] (b) 'The only reason firms use debt to finance investments is because when the debt matures, all obligations end.' Discuss. [40%] (c) Spira plc. is considering an investment that requires the issuance of 75,000 new shares. It currently has earnings per share of 30 pence and this is not expected to change because of undertaking the new investment. A company in the same risk class has a price-to-earnings ratio of 8:1. What is the maximum amount of finance that Spira can raise from such an issue? [20%]