24. A company is expecting EBIT of `5,00,000 per annum on investment of `10,00,000.

Company is in need of `8,00,000 for its expansion activities. Company can raise this amount by either equity shares capital or 12% Preference Share Capital or 10% debentures.

The company is considering the following financing patterns:

(i) 10,00,000 through issue of equity shares at par;

(ii) 5,00,000 by issue of equity share capital and remaining 5,00,000 by issue of debentures;

(iii) 5,00,000 through equity shares and 2,50,000 through 12% Preference Share Capital and remaining 2,50,000 through 10% debentures.;

(iv) 5,00,000 through debt and 2,50,000 through equity shares and remaining 2,50,000 through 12% Preference Share Capital.

Find out the best financing mix assuming 50% tax rate.