21. Calculate the level of EBIT at which the indifference point between the following financing alternatives will occur:

(i) Ordinary share capital `10 lakh or 15% debentures of `5 lakh and ordinary share capital of `5 lakh.

(ii) Ordinary share capital of `10 lakh or 13% Preference Share Capital of `5 lakh and ordinary share capital of `5 lakh.

(iii) Ordinary share capital of `10 lakh or ordinary share capital of `5 lakh, 13%

Preference Share Capital of `2 lakh and 15% debenture of `3 lakh.

(iv) Ordinary share capital of `6 lakh and 15 debentures of `4 lakh or ordinary share capital of `4 lakh, 13% unit Preference Share Capital of `2 lakh and 15% debentures of `4 lakh.

(v) Ordinary share capital of `8 lakh and 13% Preference Share Capital of `2 lakh or ordinary share capital of `4 lakh, 13% Preference Share Capital of `2 lakh and 15%

debentures of `4 lakh.

Assume that the corporate tax rate is 50 percent and the price of the ordinary share is `10 in each case.