1. XXX PLC, which manufactures a wide range of personal protective equipment (PPE), has been invited by HM Government to tender for a contract to supply face-masks and visors to hospitals in the south of England. The CEO is keen to accept this contract, even though the companys Chief Accountant (CA) has warned the board that the company will have to raise 1 billion to buy the specialised equipment required to meet the contracts terms, because if they succeed, Guardian will be appointed as the primary PPE supplier to the NHS. The CEO therefore tasks his CA with devising the most cost-effective means of raising this massive sum. Funds may be raised by issuing equity and raising external debt, and the CEO has asked the CA to structure what their shareholders would regard as an optimal combination of the two. How best might this funding be structured and what issues should the CA take into account when making a decision? Critically discuss relevant factors, basing your rationale on key capital structure theories (as we discussed in classes, such as equity raising and credit finance including bond issuance), when advising of the best course of action. (15 marks, <300 words)