A company needs Rs.31,25,000 for the construction of new plant. The following three plans are feasible: a) The company may issue 3,12,500 equity shares at Rs.10 per share. b) The company may issue 1,56,250 ordinary equity shares at Rs. 10 per share and 15,625 debentures of Rs. 100 denomination bearing an 8% rate of interest. c)The company may issue 1,56,250 equity shares at Rs. 10 per share and 15,625 preference shares at Rs. 100 per share bearing an 8% rate of dividend. (i) If the Company's earnings before interest and taxes are Rs.62,500, Rs.1,25,000, Rs.2,50,000, Rs.3,75,000 and Rs.6,25,000, what are the earnings per share under each of three financial plans? Assume a Corporate Income-tax of 40%. ii) Which alternative would you recommend and why? (iii) Determine the EBIT-EPS indifference points by formulae between Financing Plan I & Plan II and Plan I & Plan III. (5+2+3)