Angel plc is a listed firm is in the apparel business with the Gabriel brand. It sold 20 million units for 20 per unit in its financial year ending at 30th June 2020. In 2020- 2021, it is introducing their new brand, Magdalene, which is a cheaper brand. This new brand can increase revenue by 40%. Angel expects capital expenditures of 40 million in 2020-2021 to be used for replacement and sales expansion purposes. Angel's summarised balance sheet (Statement of Financial Position) for the year ending 30 June 2020 is as the following: Assets Utilised Fixed (non-current) Current: Inventory Accounts Receivable Cash Current Liabilities: Corporate Tax payable Accounts Payable Net current assets 12% Debts (More than 1 year) Net assets Equity : Ordinary equity (50pence nominal value) Reserves Investors' funds million 32 46 12 (10) (36) million 90 (46) million 240 44 (40) 244 120 124 244 The company's profit before tax and interest at 30th June, 2020 was 32% of sales, after reducing depreciation of 10 million. The changes in depreciation for 2020-21 is deemed to increase to eighteen million pounds. Corporate tax is 33%, with 1-year delay payment. The firm plan to increase dividends by 5% per annum. For the financial year ending 30 June, 2020, its payout amounts to 10 million net. The firm's cash balances cannot be reduced to below 6% of sales. Required (a) As an advisor, evaluate the external financing of the firm to raise capital to support their sales expansion. Note: All depreciation provisions are eligible for tax relief. (13 marks) (b) Evaluate SIX (6) appropriate methods of financing to support Angel's sales expansion. (12 marks) [Total: 25 Marks]