9. Rastogi Ltd is considering two plans

(a) 15% debt or

(b) issue of 100,000 shares of 10 each to finance a proposed expansion at a cost of 1,000,000. The company expects EBIT with associated probabilities as follows: EBIT R) 100,000 150,000 200,000 250,000 300,000 400,000 Probabilities 0.05 0.10 0.30 0.40 0.10 0.05 Determine the expected EBIT and coefficient of variation of EBIT. Also calculate expected EPS and its variability under two plans. Comment on your results. The company has 100,000 shares. outstanding, and the corporate tax rate is 35 per cent.