Paisley Brothers plc, a company producing loud paisley shirts, has net operating income of £2000 and is faced with three options of how to structure its debt and equity:

(a) to issue no debt and pay shareholders a return of 9 per cent;

(b) to borrow £5000 at 3 per cent and pay shareholders an increased return of 10 per cent;

(c) to borrow £9000 at 6 per cent and pay a 13 per cent return to shareholders.

Assuming no taxation and a 100 per cent payout ratio, determine which financing option maximises the market value of the company.