Capital structure of a company includes the following:

(i) Equity share capital: 50,000 shares of face value ₹100 each 

(ii) Preference shares capital: 20,000, 12% shares of face value ₹100 each 

(iii) Debt of ₹30,00,000 bearing a coupon rate of 10%

During the year, the company earned EBIT of ₹25,00,000. The equity capitalization rate for this risk category of the company is 15% and the income of the company is subject to 30% tax. Here, we need to calculate the earnings for equity shareholders. It is assumed that the capitalization rate of preference shareholders and debenture holders is equal to the dividend/interest rate on these securities. Therefore, the value of preference and debt is equal to the book value as given in the question. Calculate the value of the company.