A cement company is considering expanding its manufacturing capacity. The proposed plant will cost 300 crores. The company expects the sale to increase by 180 crores The variable cost is expected to be 40% of sales. The fixed cost will be 40 crores. The company's tax rate is 35%. CFO is debating between three alternative plans to finance the investment cost of the plant. The first plan is to borrow 300 crores from a bank at a 10% rate of interest. The second plan is to raise equity capital by selling shares at the current market price of Rs150. The current book value per share is 135 and the face value is 100. The company already has 2.5 crore outstanding shares. The third alternative is to raise equity and debt in equal proportions. You are required to calculate

1. Break-even sales.

2. EPS resulting from investment in the plant under three financing alternatives.

3. Break-even EBIT for the first and the second and the first and the third alternatives.

4. Operating leverage and financial leverage under three alternative plans.