3.2 Tea-Tree Bay Limited is considering two financing plans to raise $10 million. The company tax rate is 28%. Plan A: This plan is an all-ordinary share plan, where the company sells 1,000,000 shares at $10 per share. Plan B: This plan uses financial leverage. The company is considering a debt (Bonds) Issue with a 20-year maturity period. The bond issue will carry a coupon rate of 5.5% per annum, and the principal borrowed will amount to $5 million, and the remaining $ 5 million would be raised by selling ordinary shares at $10 per share. The financial leverage option is considered to be a permanent part of the company's capitalisation, and hence no fixed maturity date is needed for the analysis. Required: Find the EBIT indifference level associated with the two financing plans Note: All workings must be provided (6 marks)