Stanza Plc, which is still effectively controlled by the Stanza family although they now own only a minority of shares, is to undertake a substantial new project which requires external finance of about 40 million, a 40% increase in gross assets. The project is to develop and market a new product that is fairly risky. It has been suggested to the directors that one way of raising the required funds is to issue new ordinary shares by making an 'offer for sale' to the general public. (a) Compare and contrast the 'offer for sale' method with alternative techniques of raising long-term equity finance. [40%] (b) Another suggestion put forward is to finance the project using debenture finance. From the point of view of the issuing company, discuss the advantages and disadvantages of debenture finance over equity finance