with reference

QUESTION 2 Baze University is produces a range of central heating systems for sale to builders' merchants. As a result of increasing demand for the businesses' products, the directors have decided to expand production. The cost of acquiring new plants and machinery and the increase in working capital requirements are planned to be financed by a mixture of long-term and short-term borrowing. Required a) As the director of finance of Baze University, discuss the major factors that should be considered when deciding on the appropriate mix of long-term borrowing necessary to finance the expansion programme. b) List and explain the appropriate finance mix to Baze University as follows: I. Three short-term sources of finance II. Three long-term sources of finance (25 marks)