QUESTION TWO EasyHealth Limited is a five year private limited company specialized in the manufacture of a range of health drinks, foods and supplements aimed at the fitness market. At present their biggest customers are health food shops and fitment centers. However, now that their brand has become established, the wealthy owners, who also manage the business, are convinced that sales could be increased dramatically through the opening of an internet shop. They are currently considering how best to fund the expansion of the business, Funds would be needed to set up the website, expand manufacturing at the factory and employ more staff to deal with administration, dispatch and delivery of the web orders. It is estimated that K2million would be needed for the expansion. At present the market value of the company's equity is K4million and the company has loans of K500, 000, repayable in six months' time. The company has cash built up from retained earnings of K1.3million. Required: () Outline THREE appropriate sources of medium/long term finance that may be available to EasyHealth Limited to finance its expansion. Presume that government grants and leasing are NOT appropriate. (9 marks) (ii) Discuss FOUR factors that EasyHealth Limited should take into account when deciding on the source of financing for its expansion (16 marks) Total (25 marks)