The Potato Tomato Company is considering a project which costs $100 million .The company's current capital is structure is 40% Debt and 60% Equity, and it has $120 Million dollars in Assets.The owner,Mr.Potatoheadhas two options to raise the funds.

The first option is to borrow the money from a bank at 5% interest. Current debt is at 3%.

The second option is to sell half the company to Mrs. Tomato head for the $100 Million. Mrs Tomato head would become a 50% partner in the company in exchange.

Suggest one of the options and provide supporting points as to why you think its the best course of action.