My Home Ltd. (MHL) is an interior designer company which is owned by Cheung's family (25%), Wong's family (20%), Ho's family (20%), Future Investment Fund (10%) and the public investors (25%). Below is the latest balance sheet of MHL: SM 96 Property, Plant and Equipment Cash and Cash Equivalents Trade Receivables Other Current Assets Total Assets 22 35 10 163 Shareholders' Equity Long-term Loans Trade Payables Other Current Liabilities Total Equity and Liabilities 38 95 18 12 163 MHL usually pays out 80% dividend from its annual profits which are stable. It currently pays 35% of corporate profit tax. MHL owns an office in Central at a cost of $78M. The office had been used as a security of a 10-year bank loan of S90M. The economists expect both the interest rate and inflation rate will increase in the coming five years. MHL is planning to have a new round of $30M financing for expanding the company's future business. Based on the information provided above, discuss the pros and cons of adopting equity (common stock) and debt financing by MHL. Recommend which financing method MHL should better use