Neelabh Sarin, the Finance Manager and Atul Chopra, the Managing Director of Ghokerns Ltd. were discussing regarding the source of finance to be raised for modernization of their existing plant. Quoting that ‘Sensex has soared by 5078 points’ in the last three years, Neelabh Sarin suggests that equity should be preferred while Atul Chopra wanted to opt for debt.Keeping in mind the high operating costs of the company, suggest the source of finance that should be used for modernization of existing plant. Also,explain the two factors highlighted above which should be kept in mind for taking this decision