Question 3 Eos Ltd is planning to source for $475,000 funding for five years. The board of directors is considering to obtain a bank loan and is agreeable to pay five equal annual installment payment. Atom Bank has agreed to charge an annual interest of 12 percent for the five-year loan. As the Finance Manager, you are required to explain to the Board of Directors the following: (a) Discuss four (4) reasons why Debt financing is preferred over Equity financing. (8 marks) (b) Compute the annual instalment payment that Eos Ltd has to pay. (4 marks) (c) Prepare the Loan Amortisation schedule for the five years to indicate the amount charged as interest and the amount which will contribute to principal reduction. (8 marks)