● 12. Anurup Ltd. has equity share capital of `5,00,000 divided into shares of `100 each. It wishes to raise `3,00,000 for expansion-cum-modernisation scheme. The company plans the following financing alternatives:

(i) By issuing equity shares of `100 each (ii) `1,00,000 by issuing equity shares of `100 each and `2,00,000 through issue of 10%
Debenture (iii) By raising loan at 10% per annum (iv) `1,00,000 by equity shares of `100 each and `2,00,000 by issuing 8% Preference Shares of `100 each.
You are required to suggest the best alternative giving your comment assuming that the estimated earnings before interest and taxes (EBIT) after expansion is `1,50,000 and corporate tax rate is 35%.