4. A Salalah Mills SAOG Company presently is having rational Earnings before interest and tax. This company needs long-term sources of funds for installation of a new factory. The new factory expects to yield annual earnings before interest and tax of OMR 500,000. In choosing a financial plan, Salalah Mills Company has an objective of maximizing earnings per share (EPS). The company proposes to issuing ordinary shares and raising debt of 60% of the required funds at a coupon rate of 5.5%. The market price per share is estimated at OMR 10 and is expected to rise up to OMR 15 per share if the funds are borrowed in excess of OMR 3,000,000. This company needs OMR 6,000,000 long term funds. Assume that the corporate tax rate is 50%. As a financial analyst, compute earnings per share under proposed debt financing by following the Traditional Approach of Capital Structure. (2 Marks)