The finance director of King Size is currently reviewing the capital structure of his company. King Size has been in the industry for more than 30 years. As the company becomes more mature and established its reputation with high quality products, it was able to generate a stable streams of earnings in the past few years. He is considering about the possibility of issuing secured bonds backed by fixed assets and increasing the financial leverage to minimizeits cost of capital (WACC). The company'spartial balance sheet as at 31 December 2019 is as follows: